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Globalization of R&D by US-based multinational enterprises

  • Athukorala, Prema-chandra
  • Kohpaiboon, Archanun

This paper examines patterns and determinants of overseas R&D investment by US-based manufacturing MNEs using a new panel dataset over the period 1990-2004. The analysis reveals that R&D intensity of operation of US MNE affiliates is determined mainly by the domestic market size, overall R&D capability and cost of hiring R&D personnel. There is no evidence to suggest that R&D specific incentives have a significant impact on inter-country differences in R&D intensity when controlled for other relevant variables. Overall, our findings cast doubts on the efficacy of efforts by host country governments to entice MNE affiliates to engage in domestic R&D activity, in a context where R&D is becoming a truly global activity.

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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 39 (2010)
Issue (Month): 10 (December)
Pages: 1335-1347

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Handle: RePEc:eee:respol:v:39:y:2010:i:10:p:1335-1347
Contact details of provider: Web page: http://www.elsevier.com/locate/respol

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