Determinants of Equity-based and Co-operative Foreign R&D and Impact on the Parent Firm’s Performance

Martin Berger and Heinz Hollenstein ()

No 97, FIW Working Paper series from FIW

Abstract: The paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm’s performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm’s performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation.

Keywords: Internationalisation of R&D; Governance of foreign R&D; International R&D co-operation; Foreign R&D and performance; OLI paradigm and R&D (search for similar items in EconPapers)
JEL-codes: F23 L22 L24 O31 (search for similar items in EconPapers)
Pages: 47
Date: 2012-06
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino, nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.fiw.ac.at/fileadmin/Documents/Publikati ... ergerHollenstein.pdf full text (application/pdf)
none

Related works:
Working Paper: Determinants of equity-based and co-operative foreign R&D and impact on the parent firm's performance (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsr:wpaper:y:2012:i:097

Ordering information: This working paper can be ordered from
FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna

Access Statistics for this paper

More papers in FIW Working Paper series from FIW
Bibliographic data for series maintained by ().