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Multinational Firms and Innovation: The Role of R&D Collaboration, Markets and Ownership


  • Lööf, Hans

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


In this paper, we examine the relationship between R&D collaboration, corporate ownership, market orientation and innovation. In doing so, we classify a Swedish sample of 1,249 multinational enterprises, MNEs, on the basis of their main market, corporate ownership structure and whether their collaborators are foreign-owned or not. We then apply a knowledge production model and estimate the contribution to innovation output from regional and foreign collaboration on innovation with other firms within the group, universities, suppliers and customers, competitors and consultants, controlling for internal R&D investment, human capital, physical capital, trade, financial resources and industry classification. Empirical evidence based on cross-sectional data sheds new light on how innovation is affected by local and global technology spillover.

Suggested Citation

  • Lööf, Hans, 2007. "Multinational Firms and Innovation: The Role of R&D Collaboration, Markets and Ownership," Working Paper Series in Economics and Institutions of Innovation 90, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0090

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    References listed on IDEAS

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    More about this item


    Multinational enterprises; R&D; R&D collaboration; spillovers; export; import; corporate ownership structure; community innovation survey; innovation output; micro econometrics;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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