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Multinationality, foreignness and institutional distance in the relation between R&D and productivity

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  • Añón Higón, Dolores
  • Manjón Antolín, Miguel

Abstract

This paper empirically examines to what extent being foreign and part of a multinational affects the endogenous relation between R&D and productivity. Our findings indicate that multinationals obtain in general higher R&D returns. Also, there is a negative foreignness effect in that domestic-owned multinationals outperform foreign subsidiaries. However, these effects are somehow moderated by the institutional distance between the home and host countries. These results, obtained for a panel of UK firms, are largely consistent with a set of hypotheses derived from the institutional and international business theories.

Suggested Citation

  • Añón Higón, Dolores & Manjón Antolín, Miguel, 2012. "Multinationality, foreignness and institutional distance in the relation between R&D and productivity," Research Policy, Elsevier, vol. 41(3), pages 592-601.
    • Handle: RePEc:eee:respol:v:41:y:2012:i:3:p:592-601
    DOI: 10.1016/j.respol.2011.12.007
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    2. Patricia Laurens & Pierluigi Toma & Antoine Schoen & Cinzia Daraio & Philippe Larédo, 2022. "How does Internationalisation affect the productivity of R&D activities in large innovative firms? A conditional nonparametric investigation," Post-Print hal-03840316, HAL.

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    More about this item

    Keywords

    Multinationals; Productivity; R&D; Foreignness; Institutional distance;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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