Intra-firm technology transfer and R&D in foreign affiliates: Substitutes or complements? Evidence from Japanese multinational firms

Rene Belderbos, Banri Ito and Ryuhei Wakasugi ()

Journal of the Japanese and International Economies, 2008, vol. 22, issue 3, 310-319

Abstract: R&D in foreign affiliates and technology transferred from their parent firms are important potential drivers of productivity in host countries. In this paper we examine the simultaneous impact of local R&D and intra-firm international technology transfer on productivity growth in foreign affiliates. We estimate a dynamic productivity model on a large sample of Japanese manufacturing affiliates worldwide in 1996-1997 and 1999-2000. We find that both affiliate R&D and intra-firm technology transfer contribute to productivity growth, while technology transfer exhibits decreasing marginal returns. The two sources of technology are complements: use of one source of technology increases the marginal impact of the other. J. Japanese Int. Economies 22 (3) (2008) 310-319.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:22:y:2008:i:3:p:310-319

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