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The Tangible Contribution of R&D Spending Foreign-Owned Plants to a Host Region: a Plant Level Study of the Irish Manufacturing Sector (1980-1996)

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  • Kearns, A
  • Ruane, F

Abstract

Using plant level data from the Irish manufacturing sector, we explore the relationship between foreign direct investment (FDI) and economic growth in Ireland. The central question explored in this paper is whether the tangible contribution of MNC plants which undertake R&D investment in Ireland is greater than the tangible contribution of MNC plants which undertake no R&D investment. We conclude that the scale of R&D activity in a plant is an important determinant in (i) lengthening the duration over which that plant will remain in Ireland and (ii) in improving the quality of employment created in that plant.

Suggested Citation

  • Kearns, A & Ruane, F, 1999. "The Tangible Contribution of R&D Spending Foreign-Owned Plants to a Host Region: a Plant Level Study of the Irish Manufacturing Sector (1980-1996)," Trinity Economics Papers 997, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduee:997
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    Cited by:

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    2. Mustafa Caglayan & Alessandro Flamini & Babak Jahanshahi, 2017. "Organized Crime and Technology," DEM Working Papers Series 136, University of Pavia, Department of Economics and Management.
    3. Hewitt-Dundas, Nola & Roper, Stephen, 2002. "Closing the knowledge gap in Irish manufacturing - a north-south comparison," ERSA conference papers ersa02p382, European Regional Science Association.
    4. Shin-Horng Chen & Meng-Chun Liu, 2005. "International R&D Deployment and Locational Advantage of Developing Countries: A Case Study of Taiwan," NBER Chapters, in: International Trade in East Asia, pages 81-108, National Bureau of Economic Research, Inc.
    5. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    6. Roper, Stephen & Hewitt-Dundas, Nola & Love, James H., 2004. "An ex ante evaluation framework for the regional benefits of publicly supported R&D projects," Research Policy, Elsevier, vol. 33(3), pages 487-509, April.
    7. David Bailey & Helena Lenihan & Ajit Singh, 2008. "Tiger, Tiger, Burning Bright? Industrial Policy Lessons from Ireland and East Asia for Small African Economies," Working Papers wp374, Centre for Business Research, University of Cambridge.
    8. Shin-Horng Shen & Meng-Chun Liu & Hui-Tzu Shih, 2003. "R&D Services and Global Production Networks: A Taiwanese Perspective," Economics Study Area Working Papers 52, East-West Center, Economics Study Area.
    9. Holger Görg & Eric Strobl, 2016. "Multinational companies and indigenous development: An empirical analysis," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 17, pages 305-322, World Scientific Publishing Co. Pte. Ltd..
    10. Anthony McDonnell & Jonathan Lavelle & Patrick Gunnigle & David G. Collings, 2007. "Management Research on Multinational Corporations: A Methodological Critique," The Economic and Social Review, Economic and Social Studies, vol. 38(2), pages 234-258.
    11. Sami Ben Mim & Abir Hedi & Mohamed Sami Ben Ali, 2022. "Industrialization, FDI and absorptive capacities: evidence from African Countries," Economic Change and Restructuring, Springer, vol. 55(3), pages 1739-1766, August.
    12. García, Francisco & Jin, Byungchae & Salomon, Robert, 2013. "Does inward foreign direct investment improve the innovative performance of local firms?," Research Policy, Elsevier, vol. 42(1), pages 231-244.
    13. Karim Marini Thome & Janan Joslin Medeiros & Juciara Nunes de Alcântara, 2019. "Rescuing the Industry-Based Competition to Determine the Performance of Foreign Subsidiaries in the Brazilian Host Market," Global Business Review, International Management Institute, vol. 20(1), pages 13-24, February.
    14. Anna Ferragina & Fernanda Mazzotta, 2014. "FDI spillovers on firm survival in Italy: absorptive capacity matters!," The Journal of Technology Transfer, Springer, vol. 39(6), pages 859-897, December.
    15. Anthony Murphy & Brendan M. Walsh & Frank Barry, 2003. "The economic appraisal system for projects seeking support from the industrial development agencies," Open Access publications 10197/1600, School of Economics, University College Dublin.
    16. Hu, Huiting & Yu, Gangning & Xiong, Xueli & Guo, Lijia & Huang, Jiashun, 2022. "Cultural Diversity and Innovation: An Empirical Study from Dialect," Technology in Society, Elsevier, vol. 69(C).
    17. Fortanier, Fabienne & van Wijk, Jeroen, 2010. "Sustainable tourism industry development in sub-Saharan Africa: Consequences of foreign hotels for local employment," International Business Review, Elsevier, vol. 19(2), pages 191-205, April.
    18. Chen, Shin-Horng, 2004. "Taiwanese IT firms' offshore R&D in China and the connection with the global innovation network," Research Policy, Elsevier, vol. 33(2), pages 337-349, March.
    19. Fabienne Fortanier & Selwyn Moons, 2011. "Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects," De Economist, Springer, vol. 159(4), pages 511-531, December.

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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