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Globalisation, industrial diversification and productivity growth in large European R&D companies

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  • Michele Cincera
  • Julien Ravet

Abstract

This paper aims to assess the impact of both geographic and industrial diversification of economic activities on the productivity performance of large European R&D Multinational Enterprises (MNEs). Based on the worldwide subsidiaries of these firms, we measure the performance of the firms according to their level of industrial diversification and globalisation that we proxy with the presence and importance of subsidiaries in the EU, North America and Asia–Pacific regions. The sample consists of large R&D firms that represent about 80 % of total European R&D. In general, the results indicate a positive impact from globalisation on firms’ R&D productivity, especially in the US, while a negative impact for industrial diversification is found. Copyright Springer Science+Business Media, LLC 2014

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  • Michele Cincera & Julien Ravet, 2014. "Globalisation, industrial diversification and productivity growth in large European R&D companies," Journal of Productivity Analysis, Springer, vol. 41(2), pages 227-246, April.
    • Handle: RePEc:kap:jproda:v:41:y:2014:i:2:p:227-246
    DOI: 10.1007/s11123-012-0315-x
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    1. Michele Cincera & Julien Ravet & Reinhilde Veugelers, 2016. "The sensitivity of R&D investments to cash flows: comparing young and old EU and US leading innovators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(3), pages 304-320, April.
    2. Davide Castellani & Mariacristina Piva & Torben Schubert & Marco Vivarelli, 2018. "The source of the US /EU Productivity Gap:Less and less effective R&D," LEM Papers Series 2018/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Lauriane Dewulf & Michele Cincera, 2018. "Academic Scientists: The Golden Opportunity For High-Tech Companies," Working Papers TIMES² 2018-030, ULB -- Universite Libre de Bruxelles.
    4. Claudia Pigini & Alessandro Sterlacchini & Francesco Valentini, 2023. "Persistence Of R&D Intensities In The World'S Top Investors In R&D," Working Papers 480, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    5. Pietro Moncada-Paterno-Castello & Peter Voigt & Marco Vivarelli, 2011. "Evolution of Globalised business R&D: Features, drivers, impacts," JRC Working Papers on Corporate R&D and Innovation 2011-02, Joint Research Centre.
    6. Castellani, Davide & Piva, Mariacristina & Schubert, Torben & Vivarelli, Marco, 2019. "R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 279-291.
    7. Michele Cincera & Claudio Cozza & Alexander Tübke, 2014. "Main drivers for local and global R&D sourcing of European Multinational Enterprises," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 227-245, December.
    8. Zuzana Smeets Kristkova & Cornelis Gardebroek & Michiel van Dijk & Hans van Meijl, 2017. "The impact of R&D on factor-augmenting technical change – an empirical assessment at the sector level," Economic Systems Research, Taylor & Francis Journals, vol. 29(3), pages 385-417, July.
    9. Yury Dranev & Maxim Kotsemir & Boris Syomin, 2018. "Diversity of research publications: relation to agricultural productivity and possible implications for STI policy," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1565-1587, September.
    10. Xie, Zaiyang & Wang, Jie & Miao, Ling, 2021. "Big data and emerging market firms’ innovation in an open economy: The diversification strategy perspective," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    11. Michele Cincera & Julien Ravet & Reinhilde Veugelers, 2014. "R&D Financing Constraints of Young and Old Innovation Leaders in the EU and the US," Working Papers TIMES² 2014-008, ULB -- Universite Libre de Bruxelles.

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    More about this item

    Keywords

    R&D; European MNEs; Productivity; Globalisation; Industrial diversification; O33;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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