Foreign and domestic R&D investment

R.A. Belderbos*, K. Fukao, T. Iwasa

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


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.
Original languageEnglish
Pages (from-to)369-380
JournalEconomics of Innovation and New Technology
Issue number4
Publication statusPublished - 1 Jan 2009


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