Intellectual property protection, market orientation and location of overseas R&D activities by multinational enterprises
This paper develops an analytical framework to explain the determinants of location of overseas R&D by MNEs in terms of the nature and extent of FDI and host country resources and policy regimes. Empirical findings for U.S. MNEs suggest that MNEs prefer to locate their R&D activities in countries that are able to offer them, among other particulars, larger markets, technological resources and infrastructure. Host market-oriented affiliates are more likely to have R&D units than the export-oriented ones, especially in developing countries. The relative strength of patent regime appears to affect the direction rather than the magnitude of R&D investments made in a country.
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Volume (Year): 24 (1996)
Issue (Month): 4 (April)
Pages: 673-688
| Handle: | RePEc:eee:wdevel:v:24:y:1996:i:4:p:673-688 |
| Contact details of provider: | Web page: http://www.elsevier.com/locate/worlddev
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References listed on IDEAS
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- Hirschey, Robert C & Caves, Richard E, 1981. "Research and Transfer of Technology by Multinational Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(2), pages 115-30, May.
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- Mansfield, Edwin & Teece, David & Romeo, Anthony, 1979. "Overseas Research and Development by US-Based Firms," Economica, London School of Economics and Political Science, vol. 46(182), pages 187-96, May.
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