Foreign direct investment and R&D-offshoring
We analyse a two-country model of Foreign Direct Investment (FDI) and R&D-offshoring. In the basic model, two firms, each of which is originally situated in only one of the two countries, first decide whether to build a plant abroad. Then, they decide whether to relocate R&D activities offshore. Finally, they engage in product-market competition. In this model, FDI liberalization causes a relocation of R&D activities if intrafirm communication is sufficiently well developed, external spillovers are substantial, competition is not too strong and foreign markets are not too small. Surprisingly, such a relocation of R&D activities usually nevertheless increases domestic welfare. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.
Volume (Year): 63 (2011)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: |
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bjorvatn, Kjetil & Eckel, Carsten, 2006.
"Technology sourcing and strategic foreign direct investment,"
Munich Reprints in Economics
20269, University of Munich, Department of Economics.
- Kjetil Bjorvatn & Carsten Eckel, 2006. "Technology Sourcing and Strategic Foreign Direct Investment," Review of International Economics, Wiley Blackwell, vol. 14(4), pages 600-614, 09.
- Bjorvatn, K. & Eckel, C., 2001. "Technology Sourcing and Strategic Foreign Direct Investment," Papers 28/2001, Norwegian School of Economics and Business Administration-.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994.
"Spillovers, Foreign Investment and Export Behavior,"
95-06, Columbia - Graduate School of Business.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994. "Spillovers, Foreign Investment, and Export Behavior," NBER Working Papers 4967, National Bureau of Economic Research, Inc.
- Blomstrom, Magnus & Kokko, Ari, 1998.
" Multinational Corporations and Spillovers,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 12(3), pages 247-77, July.
- Blomström, Magnus & Kokko, Ari, 1996. "Multinational Corporations and Spillovers," SSE/EFI Working Paper Series in Economics and Finance 99, Stockholm School of Economics.
- Blomström, Magnus & Kokko, Ari, 1996. "Multinational Corporations and Spillovers," CEPR Discussion Papers 1365, C.E.P.R. Discussion Papers.
- Sandra Hanslin & Rainer Winkelmann, 2006.
"The Apple Falls Increasingly Far: Parent-Child Correlation in Schooling and the Growth of Post-Secondary Education in Switzerland,"
SOI - Working Papers
0603, Socioeconomic Institute - University of Zurich.
- Alejandra Cattaneo & Sandra Hanslin & Rainer Winkelmann, 2007. "The Apple Falls Increasingly Far: Parent-Child Correlation in Schooling and the Growth of Post-Secondary Education in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(II), pages 133-153, June.
- Lalive, Rafael & Schmutzler, Armin, 2005. "Competition for Railway Markets: The Case of Baden-Württemberg," CEPR Discussion Papers 5396, C.E.P.R. Discussion Papers.
- Samuel Muehlemann & Juerg Schweri & Rainer Winkelmann & Stefan C. Wolter, 2005.
"A Structural Model of Demand for Apprentices,"
CESifo Working Paper Series
1417, CESifo Group Munich.
- Dennis Gaertner & Daniel Halbheer, 2004.
"Are There Waves in Merger Activity After All?,"
SOI - Working Papers
0414, Socioeconomic Institute - University of Zurich, revised Feb 2006.
- Boes, Stefan & Lipp, Markus & Winkelmann, Rainer, 2007.
"Money illusion under test,"
Elsevier, vol. 94(3), pages 332-337, March.
- Belderbos, Rene, 2001. "Overseas innovations by Japanese firms: an analysis of patent and subsidiary data," Research Policy, Elsevier, vol. 30(2), pages 313-332, February.
- Massimo Motta & George Norman, 1993.
"Does economic integration cause foreign direct investment?,"
Economics Working Papers
28, Department of Economics and Business, Universitat Pompeu Fabra.
- Motta, Massimo & Norman, George, 1996. "Does Economic Integration Cause Foreign Direct Investment?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 757-83, November.
- Hakanson, Lars & Nobel, Robert, 1993. "Foreign research and development in Swedish multinationals," Research Policy, Elsevier, vol. 22(5-6), pages 373-396, November.
- Neven, Damien & Siotis, Georges, 1993. "Foreign Direct Investment in the European Community: Some Policy Issues," Oxford Review of Economic Policy, Oxford University Press, vol. 9(2), pages 72-93, Summer.
- Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
- Sanna-Randaccio, Francesca, 1996. "New protectionism and multinational companies," Journal of International Economics, Elsevier, vol. 41(1-2), pages 29-51, August.
- Das, Sanghamitra, 1987. "Externalities, and technology transfer through multinational corporations A theoretical analysis," Journal of International Economics, Elsevier, vol. 22(1-2), pages 171-182, February.
- Zejan, Mario C, 1990. " R&D Activities in Affiliates of Swedish Multinational Enterprises," Scandinavian Journal of Economics, Wiley Blackwell, vol. 92(3), pages 487-500.
- Leahy, Dermot & Neary, J Peter, 1997.
"Public Policy towards R&D in Oligopolistic Industries,"
American Economic Review,
American Economic Association, vol. 87(4), pages 642-62, September.
- Leahy, Dermot & Neary, J Peter, 1995. "Public Policy Towards R&D in Oligopolistic Industries," CEPR Discussion Papers 1243, C.E.P.R. Discussion Papers.
- D Leahy & J.P. Neary, 1995. "Public Policy Towards R&D in Oligopolistic Industries," CEP Discussion Papers dp0270, Centre for Economic Performance, LSE.
- Yves Schneider & Peter Zweifel, 2005. "Spatial Effects in Willingness-to-Pay: The Case of Two Nuclear Risks," SOI - Working Papers 0502, Socioeconomic Institute - University of Zurich, revised Sep 2007.
- Philippe Mahler & Rainer Winkelmann, 2005.
"Single Motherhood and (Un)Equal EducationalOpportunities: Evidence for Germany,"
SOI - Working Papers
0512, Socioeconomic Institute - University of Zurich.
- Mahler, Philippe & Winkelmann, Rainer, 2004. "Single Motherhood and (Un)Equal Educational Opportunities: Evidence for Germany," IZA Discussion Papers 1391, Institute for the Study of Labor (IZA).
- Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 1-24, March.
- Wolfgang HÄRDLE & J. MARRON & L. YANG, 1996. "Discussion," SFB 373 Discussion Papers 1996,65, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Ignatius J. Horstmann & James R. Markusen, 1990. "Endogenous Market Structures in International Trade," NBER Working Papers 3283, National Bureau of Economic Research, Inc.
- Stefan Boes & Rainer Winkelmann, 2006. "The Effect of Income on Positive and Negative Subjective Well-Being," SOI - Working Papers 0605, Socioeconomic Institute - University of Zurich.
- Kogut, Bruce & Chang, Sea Jin, 1991. "Technological Capabilities and Japanese Foreign Direct Investment in the United States," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 401-13, August.
- Rupert Harrison & Rachel Griffith & John Van Reenen, 2004. "Technology Sourcing: An Empirical Analysis Using Firm-Level Patent Data," Royal Economic Society Annual Conference 2004 12, Royal Economic Society.
When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:63:y:2011:i:1:p:134-157. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.