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Scientific research, firm heterogeneity and foreign R&D locations of multinational firms

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  • Rene Belderbos
  • Bart Leten
  • Shinya Suzuki

Abstract

We examine the influence of host countries’ scientific research strengths on global R&D location choices by multinational firms. In an analysis of 277 new R&D activities identified for 175 firms in 40 host countries and 30 technology fields, we find that the strength of relevant university research positively affects the likelihood that host countries attract foreign R&D. When allowing for firm heterogeneity, university scientific research appears only a significant factor for firms with a strong science orientation in their R&D activities. Host countries’ corporate scientific research has no systematic influence on R&D location choices. Empirical results are replicated in an analysis at the regional level covering regions in Europe the US, and Japan.

Suggested Citation

  • Rene Belderbos & Bart Leten & Shinya Suzuki, 2016. "Scientific research, firm heterogeneity and foreign R&D locations of multinational firms," Working Papers of Department of Management, Strategy and Innovation, Leuven 562201, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    • Handle: RePEc:ete:msiper:562201
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    1. is not listed on IDEAS
    2. Sitnicki Maksym, 2018. "Exploration of the role of business schools in the development of world-class research universities," Technology audit and production reserves, 1(39) 2018, Socionet;Technology audit and production reserves, vol. 1(5(39)), pages 36-45.
    3. René Belderbos & Marcelina Grabowska & Stijn Kelchtermans & Bart Leten & Jojo Jacob & Massimo Riccaboni, 2021. "Whither geographic proximity? Bypassing local R&D units in foreign university collaboration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(7), pages 1302-1330, September.
    4. Ancarani, Alessandro & Ardito, Lorenzo & Di Mauro, Carmela & Petruzzelli, Antonio Messeni, 2024. "Back-shoring vs. Offshoring: The importance of innovating with host-country inventors," International Business Review, Elsevier, vol. 33(6).
    5. René BELDERBOS & Kenta IKEUCHI & Kyoji FUKAO & YoungGak KIM & Hyeog KWON, 2022. "What Do R&D Spillovers from Universities and Firms Contribute to Productivity? Plant level productivity and technological and geographic proximity in Japan," Discussion papers 22106, Research Institute of Economy, Trade and Industry (RIETI).
    6. Okafor, Luke Emeka & Hassan, M. Kabir & Rashid, Mamunur & Prabu, Darniya & Sabit, Ahmed, 2022. "Risk dimensions, risk clusters, and foreign direct investments in developing countries," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 636-649.
    7. Loles Añón Higón & Alfonso Díez-Minguela, 2021. "Location, Location, Location: Do Universities Matter for Foreign R&D?," Working Papers 2109, Department of Applied Economics II, Universidad de Valencia.
    8. repec:hal:cepnwp:hal-05000473 is not listed on IDEAS
    9. Belderbos, René & Leten, Bart & Suzuki, Shinya, 2023. "International R&D and MNCs' innovation performance: An integrated approach," Journal of International Management, Elsevier, vol. 29(6).
    10. Falk, Martin & Hagsten, Eva, 2019. "Attractiveness and efficiency of European universities as hosts for Marie Curie grant holders," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203664, Verein für Socialpolitik / German Economic Association.
    11. Zhang, Jia & Wang, Jian & Winnink, Jos & Jong, Simcha, 2025. "Collaboration networks and radical innovation: Two faces of tie strength and structural holes," Journal of Informetrics, Elsevier, vol. 19(1).
    12. De Beule, Filip & Van Beveren, Ilke, 2019. "Sources of open innovation in foreign subsidiaries: An enriched typology," International Business Review, Elsevier, vol. 28(1), pages 135-147.

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