R&D Investments of Multinational Corporations

Rajaram Veliyath and Rakesh B. Sambharya ()
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Rajaram Veliyath: Kennesaw State University
Rakesh B. Sambharya: Rutgers University-Camden

Management International Review, 2011, vol. 51, issue 3, No 5, 407-428

Abstract: Abstract This paper investigated the influence of country-level factors that have led to shifts in the patterns of international R&D investments made by Multinational Corporations (MNCs), from an exclusive focus on developed countries to a broader scope that also includes developing countries. Differences in a country’s national technological innovation capability, that comprised the country’s capacity for the creation of technology, technology infrastructure and the development of human skills, were the most important factors in attracting R&D investments. Different strategic motivations like home-base exploiting versus home-base augmenting foreign R&D investments are attracted to countries with differing national innovation capabilities. The country’s Intellectual Property Rights (IPR) score was also an important influence on R&D investments. International investor’s experience with the country, as measured by prior FDI inflows, was a critical element in attracting R&D investment inflows.

Keywords: Strategic motivations for international R&D investments; Intellectual property rights; Institutions; National innovation capability (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s11575-011-0079-y

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