German Companies Do Less Research Abroad

Heike Belitz

Weekly Report, 2010, vol. 6, issue 18, 133-139

Abstract: Germany has profited from the internationalization of research and development (R&D) in multinational companies. While the international R&D balance sheet was balanced until 2001, foreign companies now invest more in R&D in Germany than German companies abroad. The share of R&D expenditures of German multinationals abroad is declining, whereas their global expenditures are increasing. This means the internationalization of R&D activities in Germany has slowed down. Strategic restructuring of multinational companies is the decisive factor for internationalizing R&D, not relocation. Against this background, current plans for tax relief for R&D will probably not lead to significant backshoring of foreign R&D activities to Germany.

Keywords: Globalization; Research and development; Multinational companies; R&D tax credit (search for similar items in EconPapers)
JEL-codes: F23 L2 O3 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwrp:wr6-18

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