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What determines the location choice of R&D activities by multinational firms?

Iulia Siedschlag (), Donal Smith, Camelia Romocea Turcu and Xiaoheng Zhang

Research Policy, 2013, vol. 42, issue 8, 1420-1430

Abstract: We analyse 446 location decisions of R&D activities by multinational firms incorporated in the European Union over 1999–2006. Our results suggest that on average, the location probability of a representative R&D foreign affiliate increased with agglomeration economies from foreign R&D activities, human capital, proximity to centres of research excellence and the research and innovation capacity of the region. Further, our evidence suggests that in comparison to European multinational firms, the effects of patents intensity and proximity to centres of research excellence were stronger in the case of North American multinational firms. While government R&D expenditure intensity increased the probability of location of R&D activities by European multinational firms in the region, it did not have a significant effect on the probability of location of R&D activities by North American multinational firms.

Keywords: Foreign direct investment; Internationalisation of R&D; Location choice; Conditional logit models; Nested logit models; European Union (search for similar items in EconPapers)
JEL-codes: F23 O32 R38 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:42:y:2013:i:8:p:1420-1430

DOI: 10.1016/j.respol.2013.06.003

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