 R&D intensity for innovative and adaptive purposes in overseas subsidiaries: Evidence from Japanese multinational enterprisesYasuyuki Todo and Satoshi Shimizutani Research in International Business and Finance, 2009, vol. 23, issue 1, 31-45 Abstract: This paper investigates the causes of R&D activities of overseas subsidiaries using firm-level panel data for Japanese multinationals. We distinguish between overseas innovative R&D (basic and applied research) and adaptive R&D (development and design) and examine how the intensity of each type of R&D is determined, using Amemiya Generalized Least Squares estimation. Our findings suggest that overseas innovative R&D aims at the exploitation of foreign knowledge, whereas adaptive R&D has no such aim. In addition, the size of the host country's market positively affects both types, whereas geographic distance between the host and the home country has a negative impact. Finally, the parent firm's knowledge is found to increase the size of overseas adaptive R&D but not innovative R&D. Based on a theoretical model, we interpret this evidence as showing that knowledge of the parent firm is not fully utilized in innovative R&D of its subsidiary. Keywords: Overseas; R&; D; activities; Multinational; enterprises; Total; factor; productivity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:23:y:2009:i:1:p:31-45 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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