R&D, Integration, and Foreign Ownership
This study empirically investigates the effect of foreign ownership on research and development (R&D) investment based on firm-level panel dataset for the period 2000-2008 taken from the Basic Survey of Japanese Business Structure and Activities . The results reveal the following. First, the "integration effect" on R&D is negative for domestic or foreign majority ownership. Second, although the "foreign ownership effect" controlling for integration effect is insignificant, it becomes positive only when the parent firm is located in a non-G7 country. Third, the negative integration effect is stronger for vertical integration than it is for horizontal integration. These findings have an important implication in that the globalization and integration of firms not only may affect the pattern of production process and the global supply chain, but also have important influence on the level of domestic R&D activities.
|Date of creation:||Aug 2013|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
Web page: http://www.rieti.go.jp/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:13071. 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: (NUKATANI Sorahiko)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.