Companies with R&D Abroad Make Germany a Strong Research Location

Heike Belitz

DIW Economic Bulletin, 2017, vol. 7, issue 46/47, 477-487

Abstract: In recent years, German companies have invested more in research and development (R&D) abroad. After a prolonged plateau period, the proportion of investment abroad rose to around 35 percent; concurrently R&D expenditure in Germany has continued to rise sharply. Growth abroad did not occur at the expense of domestic research. Foreign companies in Germany have also invested more in R&D recently but have not yet topped the 2011 record high. Measured by stocks of foreign direct investment, they should still have some potential for higher expenditure in R&D. In international comparison, the growth in private R&D investment in Germany in recent years was high. This was mainly driven by German companies with R&D abroad.

Keywords: Research and development; globalisation; multinational companies (search for similar items in EconPapers)
JEL-codes: D24 F21 L60 O31 (search for similar items in EconPapers)
Date: 2017
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