How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data

Spyros Arvanitis and Heinz Hollenstein ()

No 375, WIFO Working Papers from WIFO

Abstract: The aim of this paper is to investigate the differences between specific motives of R&D investment in foreign locations with respect to the factors influencing the likelihood of foreign R&D and to the impact of foreign presence on the parent firms' innovativeness and productivity. An econometric analysis of Swiss firm panel data shows, firstly, that factors related to firm-specific knowledge-oriented advantages are more important for explaining the likelihood of foreign R&D activities than factors reflecting disadvantages related to home location. Secondly, knowledge-oriented motives of foreign R&D are positively correlated to innovation performance of domestic firms, whereas market-oriented and resource-oriented strategies correlate positively with productivity.

Pages: 51 pages
Date: 2010-07
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ifn, nep-ino, nep-int and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2010:i:375

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