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Internationalization Of Research And Development-Causes And Consequences For A Small Economy

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  • Thomas Andersson

Abstract

Taking note of the importance of outward foreign direct investment for knowledge creation in small countries, the article analyses causes and consequences of the internationalization of R&D. Using firm-specific data on Swedish manufacturing and a selection bias corrected regression method, variation across firms in the share of foreign R&D is explained with needs to overcome transfer costs and with technical progress, while influence of intra-firm trade is refuted. Complementary examination of affiliate characteristics speaks against small countries losing their edge in knowledge creation and production.

Suggested Citation

  • Thomas Andersson, 1998. "Internationalization Of Research And Development-Causes And Consequences For A Small Economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(1), pages 71-91.
    • Handle: RePEc:taf:ecinnt:v:7:y:1998:i:1:p:71-91
    DOI: 10.1080/10438599800000029
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    References listed on IDEAS

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    1. Wilfred J. Ethier & James R. Markusen, 2021. "Multinational firms, technology diffusion and trade," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 7, pages 131-158, World Scientific Publishing Co. Pte. Ltd..
    2. Braunerhjelm, Pontus & Ekholm, Karolina & Grundberg, Lennart & Karpaty, Patrik, 1996. "Swedish Multinational Corporations: Recent Trends in Foreign Activities," Working Paper Series 462, Research Institute of Industrial Economics.
    3. Svensson, Roger & Fors, Gunnar, 1994. "R&D and Foreign Sales: Evidence from Swedish Multinationals," Working Paper Series 423, Research Institute of Industrial Economics.
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    Cited by:

    1. Hollenstein, Heinz & Berger, Martin, 2015. "Choice of foreign R&D entry mode and its relation to firm performance: A firm-level analysis for Switzerland and Austria," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy, vol. 9, pages 1-47.
    2. Spyros Arvanitis & Heinz Hollenstein, 2006. "Determinants of Swiss firms' R&D activities at foreign locations," KOF Working papers 06-127, KOF Swiss Economic Institute, ETH Zurich.
    3. Martin Berger & Heinz Hollenstein, 2012. "Determinants of equity-based and co-operative foreign R&D and impact on the parent firm's performance," KOF Working papers 12-305, KOF Swiss Economic Institute, ETH Zurich.

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    More about this item

    Keywords

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    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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