EconPapers    
Economics at your fingertips  
 

Foreign Acquisitions, Domestic Multinationals, and R&D

Roger Bandick (), Holger Görg () and Patrik Karpaty ()

No 8081, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The aim of this paper is to evaluate the causal effect of foreign acquisition on R&D intensity in targeted domestic firms. We are able to distinguish domestic multinationals and non-multinationals, which allows us to investigate the fear that the change in ownership of domestic to foreign multinationals leads to a reduction in R&D activity in the country, as headquarter activities are relocated to the new owner’s home country. We use unique and rich firm level data for the Swedish manufacturing sector and different micro-econometric estimation strategies in order to control for the potential endogeneity of the acquisition dummy. Overall, our results give no support to the fears that foreign acquisition of domestic firms lead to a brain drain of R&D activity in Swedish MNEs. Rather, this paper finds robust evidence that foreign acquisitions lead to increasing R&D intensity in acquired domestic MNEs and non-MNEs.

Keywords: domestic multinationals; foreign acquisition; R&D (search for similar items in EconPapers)
JEL-codes: F23 (search for similar items in EconPapers)
Date: 2010-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=8081 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Chapter: Foreign Acquisitions, Domestic Multinationals, and R&D (2016) Downloads
Journal Article: Foreign Acquisitions, Domestic Multinationals, and R&D (2014) Downloads
Working Paper: Foreign acquisitions, domestic multinationals, and R&D (2011) Downloads
Working Paper: Foreign acquisitions, domestic multinationals, and R&D (2010) Downloads
Working Paper: Foreign Acquisitions, Domestic Multinationals, and R&D (2010) Downloads
Working Paper: Foreign acquisitions, domestic multinationals, and R&D (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:8081

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=8081

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2020-03-29
Handle: RePEc:cpr:ceprdp:8081