Absorptive Capability of Japanese and European MNCs: Balance between Autonomy and Control of R&D Subsidiaries in the US

Seiko Arai
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Seiko Arai: Uppsala University, Uppsala, Sweden / National Graduate Institute for Policy Studies, Tokyo, Japan

No 16-18, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: This paper analyzes the capability of Japanese and European multinational companies (MNCs) to absorb technological knowledge from the United States through their R&D operation in the US. Employing the notion of gabsorptive capacity h, this research defines the capability of a firm to absorb technological knowledge from abroad as gabsorptive capability (AC), h and aims to examine the components of AC and their interrelationships using patent and sales data in the context of R&D management of Japanese and European MNCs at home and in the US. This paper also presents the taxonomies to show that a balance of autonomy and control is the key to increasing AC in the US and contributing to the US market sales by utilizing the home and host country technologies.

Pages: 34 pages
Date: 2016-10
New Economics Papers: this item is included in nep-cse and nep-ino
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Persistent link: https://EconPapers.repec.org/RePEc:ngi:dpaper:16-18

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