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What factors determine the mode of overseas R&D by multinationals? Empirical evidence |
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| Authors: | Banri Ito |
| Institution: | a Research Institute of Economy, Trade and Industry, Japan b Institute of Economic Research, Kyoto University, Japan c Faculty of Economics, Keio University, Japan |
| Abstract: | The large expansion of MNC's overseas R&D is noteworthy. This paper investigates the factors affecting the expansion of support-oriented R&D and knowledge sourcing R&D by using qualitative data which indicate the modes of R&D conducted at a plant site and a laboratory. The empirical results suggest that (1) the export propensity of affiliate firms, relative abundance of human resources for R&D, and accumulated technological knowledge have a positive effect on both the modes of R&D at a plant site and a laboratory, and (2) the stronger enforcement of intellectual property positively affects the expansion of knowledge sourcing R&D. These results show that not only firm-specific but also country-specific factors positively affect the overseas expansion of R&D. |
| Keywords: | C35 F23 O31 O34 |
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