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Overseas R&D by Multinationals in Foreign Centers of Excellence

Author

Listed:
  • Fors, Gunnar

    (Research Institute of Industrial Economics (IFN))

  • Zejan, Mario

    (Stockholm School of Economics)

Abstract

This paper examines the determinants of overseas R&D by Swedish multinationals. Our empirical results indicate that the location of R&D abroad to a large extent is motivated by the need to adapt products and processes to conditions in the foreign markets where the firms operate. However, we also find that the MNEs tend to locate their R&D in host countries which are relatively specialized technologically in the firms' own areas. This finding may suggest that one additional motive to locating R&D abroad is to gain access to knowledge in foreign "centers of excellence" and benefit from localized spillovers.

Suggested Citation

  • Fors, Gunnar & Zejan, Mario, 2012. "Overseas R&D by Multinationals in Foreign Centers of Excellence," Working Paper Series 458, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0458
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    References listed on IDEAS

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    More about this item

    Keywords

    Overseas R&D; Technology Sourcing; Multinationals;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • 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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