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The Innovative Performance of Foreign-owned Enterprises in Small Open Economies

Author

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  • Dachs, Bernhard

    (Austrian Research Centers, Vienna, Austria)

  • Ebersberger, Bernd

    (Management Center Innsbruck, Innsbruck, Austria)

  • Lööf, Hans

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper compares the innovative performance of foreign-owned and domestically owned enterprises in five European countries. We look at innovation inputs, outputs, and examine how strong foreign-owned enterprises are embedded in the innovations systems of their host countries. We find that foreign ownership causes no differences in innovation input, but yields a higher innovation output and higher labour productivity. In four of the five countries, affiliates of foreign multinationals show a similar or even a higher propensity to co-operate with domestic partners than domestically owned enterprises

Suggested Citation

  • Dachs, Bernhard & Ebersberger, Bernd & Lööf, Hans, 2007. "The Innovative Performance of Foreign-owned Enterprises in Small Open Economies," Working Paper Series in Economics and Institutions of Innovation 87, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0087
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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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