Factors Determining the Mode of Overseas R&D by Multinationals: Empirical Evidence

Banri Ito and Ryuhei Wakasugi ()

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: The large expansion of MNCs' overseas R&D is noteworthy. This paper investigates the factors affecting the expansion of support-oriented R&D and knowledge sourcing R&D by using qualitative data which indicate the modes of R&D conducted at a plant site and a laboratory. The empirical results suggest that (1) the export propensity of affiliate firms, relative abundance of human resources for R&D, and accumulated technological knowledge have a positive effect on both the modes of R&D at a plant site and a laboratory, and (2) the stronger enforcement of intellectual property positively affects the expansion of knowledge sourcing R&D. These results show that not only firm-specific but also country-specific factors positively affect the overseas expansion of R&D.

Pages: 39 pages
Date: 2007-02
New Economics Papers: this item is included in nep-ino, nep-ipr, nep-pr~, nep-knm and nep-tid
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Citations: View citations in EconPapers (52)

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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:07004

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