Multinationals and the globalization of R&D

María García-Vega, Patricia Hofmann and Richard Kneller

International Journal of Industrial Organization, 2019, vol. 63, issue C, 583-614

Abstract: In this paper we consider how the location, organization and output of knowledge production evolve within domestic firms following acquisition-FDI in order to understand the aggregate effect on an index of domestically produced innovations. We find strong differences according to how close the acquiring MNE is to the technologically frontier. Frontier MNEs are more likely to close R&D activities in acquired affiliates, but when they are retained they expand employment of high-skilled R&D workers and transfer R&D knowledge. Non-frontier MNEs make fewer changes to R&D. Overall the effect of acquisition-FDI on the domestic innovation index is positive.

Keywords: MNE; Knowledge production function; Acquisition FDI; Knowledge complementarities; R&D: Innovation; Technology transfers (search for similar items in EconPapers)
JEL-codes: D22 F23 L20 O32 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Multinationals and the Globalization of R&D (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:63:y:2019:i:c:p:583-614

DOI: 10.1016/j.ijindorg.2019.01.001

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