How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data
The aim of this paper is to investigate the differences between specific motives of R&D investment in foreign locations with respect to the factors influencing the likelihood of foreign R&D and to the impact of foreign presence on the parent firms' innovativeness and productivity. An econometric analysis of Swiss firm panel data shows, firstly, that factors related to firm-specific knowledge-oriented advantages are more important for explaining the likelihood of foreign R&D activities than factors reflecting disadvantages related to home location. Secondly, knowledge-oriented motives of foreign R&D are positively correlated to innovation performance of domestic firms, whereas market-oriented and resource-oriented strategies correlate positively with productivity.
|Date of creation:||13 Jul 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Helpman, Elhanan, 1984.
"A Simple Theory of International Trade with Multinational Corporations,"
Journal of Political Economy,
University of Chicago Press, vol. 92(3), pages 451-71, June.
- Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Scholarly Articles 3445092, Harvard University Department of Economics.
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992.
"Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations,"
NBER Working Papers
3993, National Bureau of Economic Research, Inc.
- Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 577-98, August.
- Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
- Spyros Arvanitis & Heinz Hollenstein, 2006. "Determinants of Swiss Firms’ R&D Activities at Foreign Locations: An Empirical Analysis Based on Firm-level Data," KOF Working papers 06-127, KOF Swiss Economic Institute, ETH Zurich.
- Henri Capron & Michele Cincera, 2003.
"Industry-university S&T transfers: what can we learn from Belgian CIS-2 data?,"
Brussels Economic Review,
ULB -- Universite Libre de Bruxelles, vol. 46(3), pages 59-86.
- Capron, Henri & Cincera, Michele, 2004. "Industry/University S&T Transfers: What Can We Learn From Belgian CIS-2 Data?," CEPR Discussion Papers 4685, C.E.P.R. Discussion Papers.
- Heinz Hollenstein, 2009.
"Characteristics of Foreign R&D Strategies of Swiss Firms: Implications for Policy,"
in: The New Economics of Technology Policy, chapter 19
- Heinz Hollenstein, 2008. "Characteristics of Foreign R&D Strategies of Swiss Firms. Implications for Policy," WIFO Working Papers 315, WIFO.
- Heinz Hollenstein & Benjamin Jung, 2008. "Characteristics of Foreign R&D Strategies of Swiss Firms: Implications for Policy," FIW Working Paper series 015, FIW.
- Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 1-24, March.
- Robert C Ronstadt, 1978. "International R & D: The Establishment and Evolution of Research and Development Abroad by Seven U.S. Multinationals," Journal of International Business Studies, Palgrave Macmillan, vol. 9(1), pages 7-24, March.
- Mohnen Pierre & Hoareau Cathy, 2002.
"What type of enterprise forges close links with universities and government labs? Evidence from CIS2,"
009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Masao Nakamura & Pierre Mohnen & Cathy Hoareau, 2003. "What type of enterprise forges close links with universities and government labs? Evidence from CIS 2," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(2-3), pages 133-145.
- Cathy Hoareau & Pierre Mohnen, 2002. "What Type Of Enterprise Forges Close Links With Universities And Government Labs? Evidence From CIS 2," CIRANO Working Papers 2002s-25, CIRANO.
- Christian Rammer & Anja Schmiele, 2008. "Globalisation of Innovation in SMEs: Why They Go Abroad and What They Bring Back Home," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(Supplemen), pages 173-212.
- Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
- Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
- Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
- Dominique Foray (ed.), 2009. "The New Economics of Technology Policy," Books, Edward Elgar, number 13445.
- Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-74, February.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Gupta, Anil K. & Govindarajan, V., 1994. "Organizing for knowledge flows within MNCs," International Business Review, Elsevier, vol. 3(4), pages 443-457, December.
- Ethier, Wilfred J, 1986. "The Multinational Firm," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 805-33, November.
- Rialp, Alex & Rialp, Josep & Knight, Gary A., 2005. "The phenomenon of early internationalizing firms: what do we know after a decade (1993-2003) of scientific inquiry?," International Business Review, Elsevier, vol. 14(2), pages 147-166, April.
- Schmidt, Tobias, 2007. "Motives for Innovation Co-operation? Evidence from the Canadian Survey of Innovation," ZEW Discussion Papers 07-018, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- TODO Yasuyuki & SHIMIZUTANI Satoshi, 2007. "Overseas R&D Activities and Home Productivity Growth: Evidence from Japanese Firm-Level Data," Discussion papers 07008, Research Institute of Economy, Trade and Industry (RIETI).
- Spyros Arvanitis & Heinz Hollenstein, 2001. "Technologiestandort Schweiz im Zuge der Globalisierung: Eine explorative Analyse der F&E-Aktivitäten schweizerischer Industrieunternehmen im Ausland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 137(II), pages 129-148, June.
- John Cantwell & Rajneesh Narula, 2001. "The Eclectic Paradigm in the Global Economy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 155-172.
- Spyros Arvanitis, 2006. "Innovation and Labour Productivity in the Swiss Manufacturing Sector: An Analysis Based on Firm Panel Data," KOF Working papers 06-149, KOF Swiss Economic Institute, ETH Zurich.
- Ambos, Tina C. & Ambos, Björn & Schlegelmilch, Bodo B., 2006. "Learning from foreign subsidiaries: An empirical investigation of headquarters' benefits from reverse knowledge transfers," International Business Review, Elsevier, vol. 15(3), pages 294-312, June.
- John Cantwell & Lucia Piscitello, 2005. "Recent Location of Foreign-owned Research and Development Activities by Large Multinational Corporations in the European Regions: The Role of Spillovers and Externalities," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 1-16.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2010:i:375. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz)
If references are entirely missing, you can add them using this form.