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The tangible contribution of R&D-spending foreign-owned plants to a host region: a plant level study of the Irish manufacturing sector (1980-1996)

  • Kearns, Allan
  • Ruane, Frances

Using plant level data from the Irish manufacturing sector, we explore the relationship between foreign direct investment (FDI) and economic growth in Ireland. The central question explored in this paper is whether the tangible contribution of MNC plants which undertake R&D investment in Ireland is greater than the tangible contribution of MNC plants which undertake no R&D investment. We conclude that the scale of R&D activity in a plant is an important determinant in (i) lengthening the duration over which that plant will remain in Ireland and (ii) in improving the quality of employment created in that plant.

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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 30 (2001)
Issue (Month): 2 (February)
Pages: 227-244

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Handle: RePEc:eee:respol:v:30:y:2001:i:2:p:227-244
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  1. Blomström, Magnus & Kokko, Ari, 1996. "Multinational Corporations and Spillovers," SSE/EFI Working Paper Series in Economics and Finance 99, Stockholm School of Economics.
  2. Steven J. Davis & John Haltiwanger, 1990. "Gross Job Creation and Destruction: Microeconomic Evidence and Macroeconomic Implications," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 123-186 National Bureau of Economic Research, Inc.
  3. Jozef Konings & Patrick P. Walsh, 1997. "The Effect of Real Exchange Rate Movements on the Life Expectancy of Manufacturing Plants in Ireland, 1973-94," Economics Technical Papers 977, Trinity College Dublin, Department of Economics.
  4. Neven, D. & Siotis, G., 1996. "Technology sourcing and FDI in the EC: An empirical evaluation," International Journal of Industrial Organization, Elsevier, vol. 14(5), pages 543-560, July.
  5. Barry, Frank & Bradley, John, 1997. "FDI and Trade: The Irish Host-Country Experience," Economic Journal, Royal Economic Society, vol. 107(445), pages 1798-1811, November.
  6. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-50, August.
  7. McAleese, Dermot & McDonald, Donogh, 1978. "Employment Growth and the Development of Linkages in Foreign-Owned and Domestic Manufacturing Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 321-39, November.
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