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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- Hakanson, Lars & Nobel, Robert, 1993. "Determinants of foreign R&D in Swedish multinationals," Research Policy, Elsevier, vol. 22(5-6), pages 397-411, November.
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- Michael Ferrantino, 1993. "The effect of intellectual property rights on international trade and investment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 129(2), pages 300-331, June.
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