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Utilization of R&D Results in the Home and Foreign Plants of Multinationals

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  • Fors, Gunnar

    (Research Institute of Industrial Economics (IFN))

Abstract

This paper analyzes the utilization of R&D results in the home and foreign plants of Swedish multinational enterprises (MNEs). The empirical findings indicate that the firms' R&D undertaken in the home country is used as an input in both the home and foreign plants of the MNEs. Around four-fifths of the gain in value-added attributed to home R&D was realized in the MNEs' home plants, while the remaining fifth benefitted the foreign plants. Considering that the foreign plants on average accounted for a third of the MNEs' overall output, the foreign share of the gain was substantial. R&D undertaken in foreign affiliates does not appear to be used as an input in the firms' home plants.

Suggested Citation

  • Fors, Gunnar, 1996. "Utilization of R&D Results in the Home and Foreign Plants of Multinationals," Working Paper Series 459, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0459
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    References listed on IDEAS

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    Cited by:

    1. Boris Lokshin & René Belderbos & Martin Carree, 2008. "The Productivity Effects of Internal and External R&D: Evidence from a Dynamic Panel Data Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(3), pages 399-413, June.
    2. Belderbos, Rene & Ito, Banri & Wakasugi, Ryuhei, 2008. "Intra-firm technology transfer and R&D in foreign affiliates: Substitutes or complements? Evidence from Japanese multinational firms," Journal of the Japanese and International Economies, Elsevier, vol. 22(3), pages 310-319, September.
    3. René Belderbos & Elissavet Lykogianni & Reinhilde Veugelers, 2008. "Strategic R&D Location in European Manufacturing Industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 183-206, July.
    4. Klaus Friesenbichler, 2006. "Internationale Forschungsaufträge und die Dynamik der Forschungsbeschäftigung in Österreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 79(1), pages 41-51, January.
    5. ITO Banri & WAKASUGI Ryuhei, 2007. "Factors Determining the Mode of Overseas R&D by Multinationals: Empirical Evidence," Discussion papers 07004, Research Institute of Economy, Trade and Industry (RIETI).
    6. René Belderbos, 2006. "R&D Activities in East Asia by Japanese, European, and US Multinationals," Microeconomics Working Papers 21887, East Asian Bureau of Economic Research.
    7. ITO Banri & WAKASUGI Ryuhei & TOMIURA Eiichi, 2008. "Offshoring and Productivity: Evidence from Japanese Firm-level Data," Discussion papers 08028, Research Institute of Economy, Trade and Industry (RIETI).
    8. Kazuyoshi Ohki, 2017. "International intellectual property rights protection and economic growth with costly transfer," Review of International Economics, Wiley Blackwell, vol. 25(5), pages 1130-1154, November.
    9. Ito, Banri & Wakasugi, Ryuhei, 2007. "What factors determine the mode of overseas R&D by multinationals? Empirical evidence," Research Policy, Elsevier, vol. 36(8), pages 1275-1287, October.

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    More about this item

    Keywords

    R&D; Multinationals; Home and Foreign Plants;
    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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