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Intra-firm Technology Transfer and R&D in Foreign Affiliates: Substitutes or Complements? Evidence from Japanese Multinational Firms

Author

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  • Belderbos, René

    (Katholieke Universiteit Leuven, UNU-MERIT, and University of Maastricht)

  • Ito, Banri

    (Research Institute of Economy Trade and Industry (RIETI))

  • Wakasugi, Ryuhei

    (Kyoto University, Institute of Economic Research)

Abstract

R&D in foreign affiliates and technology transferred from their parent firms are important potential drivers of productivity in host countries. In this paper we examine the simultaneous impact of local R&D and intra-firm international technology transfer on productivity growth in foreign affiliates. We estimate a dynamic productivity model on a large sample of Japanese manufacturing affiliates worldwide in 1996-1997 and 1999-2000. We find that both affiliate R&D and intra-firm technology transfer contribute to productivity growth, while technology transfer exhibits decreasing marginal returns. The two sources of technology are complements: use of one source of technology increases the marginal impact of the other.

Suggested Citation

  • Belderbos, René & Ito, Banri & Wakasugi, Ryuhei, 2008. "Intra-firm Technology Transfer and R&D in Foreign Affiliates: Substitutes or Complements? Evidence from Japanese Multinational Firms," MERIT Working Papers 2008-045, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2008045
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    Cited by:

    1. Teixeira, Aurora A.C. & Tavares-Lehmann, Ana Teresa, 2014. "Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter?," Research Policy, Elsevier, vol. 43(4), pages 737-748.
    2. Marie-Ange Véganzonès-Varoudakis & Arup Mitra & Chandan Sharma, 2012. "Are Reforms Productive? Explaining Productivity and Efficiency in the Indian Manufacturing," Post-Print hal-03058727, HAL.
    3. Mafini Dosso & Antonio Vezzani, 2015. "Top R&D investors and international knowledge seeking: the role of emerging technologies and technological proximity," JRC Working Papers on Corporate R&D and Innovation 2015-09, Joint Research Centre.
    4. Banri Ito & Ayumu Tanaka, 2016. "External R&D, productivity, and export: evidence from Japanese firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(3), pages 577-596, August.
    5. Yang, Chih-Hai & Matsuura, Toshiyuki & Ito, Tadashi, 2019. "R&D and patenting activities of foreign firms in China: The case of Japan," Japan and the World Economy, Elsevier, vol. 49(C), pages 151-160.
    6. Gupeng Zhang & Hongbo Duan & Jianghua Zhou, 2016. "Investigating determinants of inter-regional technology transfer in China: a network analysis with provincial patent data," Review of Managerial Science, Springer, vol. 10(2), pages 345-364, March.
    7. Ryuhei Wakasugi & Banri Ito & Eiichi Tomiura, 2010. "Productivity Premia of Offshoring Firms in East Asia: Evidence from Japanese Firms," Millennial Asia, , vol. 1(1), pages 76-96, January.
    8. Zhang, Gupeng & Zhou, Jianghua, 2016. "The effects of forward and reverse engineering on firm innovation performance in the stages of technology catch-up: An empirical study of China," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 212-222.
    9. HOSONO Kaoru & MIYAKAWA Daisuke & TAKIZAWA Miho, 2017. "Do Overseas Subsidiaries Benefit from Parent Firms' Intangibles?," Discussion papers 17073, Research Institute of Economy, Trade and Industry (RIETI).
    10. Járfás Zsuzsanna, 2018. "Internationalization of Japanese Business Groups – Literature Review," Marketing – from Information to Decision Journal, Sciendo, vol. 1(2), pages 27-41, December.
    11. Belderbos, René & Mohnen, Pierre, 2020. "Inter-sectoral and international R&D spillovers," MERIT Working Papers 2020-047, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. René Belderbos & Boris Lokshin & Federico Michiel, 2021. "R&D and Foreign Subsidiary Performance at or Below the Technology Frontier," Management International Review, Springer, vol. 61(6), pages 745-767, December.
    13. Gaspar, Raymond, 2022. "Harnessing Foreign Technology to Improve Firm Performance: Evidence from Philippine Manufacturing Enterprises," ADBI Working Papers 1321, Asian Development Bank Institute.

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    More about this item

    Keywords

    R&D; technology transfer; multinational firms;
    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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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