TY - JOUR
T1 - Globalization of R&D by US-based multinational enterprises
AU - Athukorala, Premachandra
AU - Kohpaiboon, Archanun
PY - 2010
Y1 - 2010
N2 - This paper examines patterns and determinants of overseas R&D investment by US-based manufacturing MNEs using a new panel dataset over the period 1990-2004. The analysis reveals that R&D intensity of operation of US MNE affiliates is determined mainly by the domestic market size, overall R&D capability and cost of hiring R&D personnel. There is no evidence to suggest that R&D specific incentives have a significant impact on inter-country differences in R&D intensity when controlled for other relevant variables. Overall, our findings cast doubts on the efficacy of efforts by host country governments to entice MNE affiliates to engage in domestic R&D activity, in a context where R&D is becoming a truly global activity.
AB - This paper examines patterns and determinants of overseas R&D investment by US-based manufacturing MNEs using a new panel dataset over the period 1990-2004. The analysis reveals that R&D intensity of operation of US MNE affiliates is determined mainly by the domestic market size, overall R&D capability and cost of hiring R&D personnel. There is no evidence to suggest that R&D specific incentives have a significant impact on inter-country differences in R&D intensity when controlled for other relevant variables. Overall, our findings cast doubts on the efficacy of efforts by host country governments to entice MNE affiliates to engage in domestic R&D activity, in a context where R&D is becoming a truly global activity.
U2 - 10.1016/j.respol.2010.09.004
DO - 10.1016/j.respol.2010.09.004
M3 - Article
SN - 0048-7333
VL - 39
SP - 1335
EP - 1347
JO - Research Policy
JF - Research Policy
IS - 10
ER -