Foreign and domestic R&D investment

Rene Belderbos, Kyoji Fukao and Tomoko Iwasa

Economics of Innovation and New Technology, 2009, vol. 18, issue 4, 369-380

Abstract: A considerable share of R&D investment is due to multinational firms that simultaneously operate R&D bases at home and abroad. We develop a simple model of foreign and domestic R&D investment and test the model's predictions on a sample of 146 Japanese multinational firms' R&D investments in Japan and the United States in 1996. The empirical results confirm that the foreign to domestic R&D ratio depends on relative technological opportunities and relative demand conditions, with foreign research expenditures responding to technological opportunity and foreign development expenditures responding to demand.

Keywords: R&D; multinational firms; foreign direct investment (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (8)

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Working Paper: Foreign and Domestic R&D Investment (2006)
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DOI: 10.1080/10438590802172404

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