Choice of foreign R&D entry mode and impact on firm performance: A firm-level analysis for Switzerland and Austria

Heinz Hollenstein () and Martin Berger

No 2015-39, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: The study seeks to identify the determinants of a firm's foreign entry mode choice and the impact of mode selection on firm performance for the specific case of R&D - a topic so far not investigated in entry mode research. Separate estimates of a Heckman selection model for Austria and Switzerland, based on comparable firm-level data and variable specification, show for both countries that the OLI model is well-suited to explain not only the propensity to investing abroad in R&D but also the respective choice between equity-based and non-equity governance modes. Moreover, it turns out, but only for Swiss companies, that foreign R&D raises (domestic) firm performance with a larger impact in case of equity-based governance. The differences between the two countries primarily reflect the much higher degree of R&D internationalisation of Switzerland.

Keywords: internationalisation of R&D; foreign R&D entry mode choice; international R&D cooperation (search for similar items in EconPapers)
JEL-codes: F23 F61 L24 O32 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eur, nep-ino, nep-int and nep-sbm
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https://www.econstor.eu/bitstream/10419/110919/1/827394241.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201539

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