IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v19y2010i3p203-232.html
   My bibliography  Save this article

Location factors of international R&D activities: an econometric approach

Author

Listed:
  • Hugo Erken
  • Marcel Kleijn

Abstract

Research and development (R&D) is important for economic growth. Many countries therefore attempt to raise the investments in R&D. Increasingly important in this context are foreign direct investments in R&D, which on average constitute 24% of total business R&D investments in the EU15 (between 1995 and 2004). This paper focuses on the question: 'Which location factors are decisive for the attractiveness of foreign R&D investments?' The answer to this question is crucial in order to attract new foreign investments in R&D and to keep home-base R&D activities in a country or to expand them. Based on econometric analysis, we show in this paper that, besides the impact of human capital and value added of foreign affiliates, a country's stock of private R&D capital is an important location factor for international R&D activities. The interpretation of this result is twofold. First of all, it indicates that firms locate their R&D abroad to reap the benefits of knowledge-spillover effects. Secondly, we argue that the stock of private R&D capital embodies a so-called 'place-to-be effect'. This effect can be regarded as a signalling effect to firms: if the private R&D capital stock in a country is relatively large, framework conditions for research are in place and the innovative climate is likely to be excellent.

Suggested Citation

  • Hugo Erken & Marcel Kleijn, 2010. "Location factors of international R&D activities: an econometric approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(3), pages 203-232.
  • Handle: RePEc:taf:ecinnt:v:19:y:2010:i:3:p:203-232
    DOI: 10.1080/10438590802469578
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590802469578
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gary A.S. Cook & Hans Lööf & Naresh R. Pandit & Börje Johansson, 2012. "The influence of clustering on MNE location and innovation in Great Britain," Chapters,in: Entrepreneurship, Social Capital and Governance, chapter 3, pages 53-82 Edward Elgar Publishing.
    2. Eva Dettmann & Iciar Dominguez Lacasa & Jutta Guenther & Bjorn Jindra, 2013. "Determinants of foreign technological activity in German regions - a count model analysis of transnational patents (1996-2009)," HSE Working papers WP BRP 17/STI/2013, National Research University Higher School of Economics.
    3. Szalavetz Andrea, 2014. "Innovation in Hungary - The Impact of EU Accession and Integration into Global Value Chains," International Journal of Management and Economics, De Gruyter Open, vol. 42(1), pages 40-59, June.
    4. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-016-9815-9 is not listed on IDEAS
    5. Laurens, Patricia & Le Bas, Christian & Schoen, Antoine & Villard, Lionel & Larédo, Philippe, 2015. "The rate and motives of the internationalisation of large firm R&D (1994–2005): Towards a turning point?," Research Policy, Elsevier, vol. 44(3), pages 765-776.
    6. Commission of Experts for Research and Innovation (EFI), Berlin (ed.), 2013. "Research, innovation and technological performance in Germany - EFI Report 2013," Research, Innovation and Technological Performance in Germany: Report, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin, volume 127, number 2013e, April.
    7. Eva Dettmann & Iciar Dominguez Lacasa & Jutta Guenther & Bjorn Jindra, 2014. "Determinants of Foreign Technological Activity in German Regions - A Count Model Analysis of Transnational Patents," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 8(1), pages 34-51.
    8. Kent Eliasson & Pär Hansson & Markus Lindvert, 2017. "Effects of foreign acquisitions on R&D and high-skill activities," Small Business Economics, Springer, vol. 49(1), pages 163-187, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:19:y:2010:i:3:p:203-232. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.