Multinational firms and the internationalization of green R&D: A review of the evidence and policy implications

Joëlle Noailly and David Ryfisch

No 33-2014, CIES Research Paper series from Centre for International Environmental Studies, The Graduate Institute

Abstract: This paper presents novel empirical evidence on the internationalization of green R&D by multinational firms (MNCs), as measured by patents data. Using data on inventors’ addresses for the set of 1,200 MNCs firms patenting in green technologies over the 2004-2009 period, we find that about 17% of green patents result from MNCs R&D investments conducted outside their home countries. MNCs tend to locate their foreign green R&D activities in other OECD markets and in China, in particular in lightings and solar technologies. The empirical analysis reveals that the probability of conducting green R&D abroad increases with the host country’s stringency of environmental regulation, market size and (green) R&D intensity. Also, relatively lower wages for scientists and engineers, and stronger protection for intellectual property rights in the host country increase the likelihood for MNCs to offshore green R&D. The paper concludes by discussing the policy implications of this changing global innovation landscape.

Keywords: Energy; R&D; Multinationals; Globalization. (search for similar items in EconPapers)
JEL-codes: O33 Q4 Q55 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2014-02-19
New Economics Papers: this item is included in nep-cse, nep-env, nep-ino, nep-int, nep-sbm and nep-tid
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Journal Article: Multinational firms and the internationalization of green R&D: A review of the evidence and policy implications (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:gii:ciesrp:cies_rp_33

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