OVERSEAS R&D ACTIVITIES AND HOME PRODUCTIVITY GROWTH: EVIDENCE FROM JAPANESE FIRM‐LEVEL DATA*

Yasuyuki Todo and Satoshi Shimizutani

Journal of Industrial Economics, 2008, vol. 56, issue 4, 752-777

Abstract: This paper investigates the impact of overseas subsidiaries' R&D activities on the productivity growth of parent firms using firm‐level data for Japanese multinational enterprises. Based on survey responses, we classify each overseas subsidiary's R&D as either ‘innovative R&D,’ which we hypothesize is likely to lead to the acquisition of foreign knowledge, or ‘adaptive R&D,’ which is more likely to lead to adaptation to local conditions. We find that overseas innovative R&D raises the parent firm's productivity growth, while adaptive R&D has no such effect. In addition, overseas innovative R&D does not improve the rate of return on home R&D.

Date: 2008
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Citations: View citations in EconPapers (27)

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https://doi.org/10.1111/j.1467-6451.2008.00363.x

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Working Paper: Overseas R&D Activities and Home Productivity Growth: Evidence from Japanese Firm-Level Data (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:56:y:2008:i:4:p:752-777

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