Do Overseas R&D Laboratories in Emerging Markets Contribute to Home Knowledge Creation?

Lorena M. D’Agostino () and Grazia Santangelo
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Lorena M. D’Agostino: University of Catania
Authors registered in the RePEc Author Service: Lorena Maria D'Agostino

Management International Review, 2012, vol. 52, issue 2, No 7, 273 pages

Abstract: Abstract The double diamond model contends that both home and host locations affect MNE’s international competitiveness. Drawing on the view that multinationals act as a link between home and host, we extend this framework and investigate theindirect impact of host on home location with reference to R&D internationalisation in emerging economies. By resorting to a sample of 221 large OECD regions from which R&D investments departed to the top six host emerging economies, we evaluate the contribution of different OECD R&D laboratories to the home knowledge creation of the OECD investing region. We test the complementarity between domestic R&D and different value-added R&D activities carried out by different technology-intensive R&D laboratories in terms of home knowledge creation of OECD investing regions. Our findings suggest that the activity of R&D laboratories focusing onadaptation complements domestic R&D in terms of knowledge creation regardless of the technological intensity of their operations, while the activity of medium technology-intensive R&D laboratories focusing ondevelopment is complementary to domestic R&D.

Keywords: Overseas R&D laboratories; Home region knowledge creation; Emerging markets (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1007/s11575-012-0135-2

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