Scientific Research, Firm Heterogeneity and Foreign R&D Locations of Multinational Firms

René Belderbos, Bart Leten, Shinya Suzuki

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

We examine the influence of host countries' scientific research strengths on global location choices by multinational firms. In an analysis of 277 new R&D activities identified for 175 firms in 40 host countries and 30 technology fields, we find that the strength of relevant university research positively affects the likelihood that host countries attract foreign R&D. When allowing for firm heterogerieity, university Scientific research appears only a significant factor for firms with a strong science on in their R&D activities. Host countries' corporate scientific research has no systematic influence on R&D location choices. Empirical results are replicated in an analysis at the regional level covering regions in Europe, the United States, and Japan.

Original languageEnglish
Pages (from-to)691-711
Number of pages21
JournalJournal of Economics & Management Strategy
Volume26
Issue number3
DOIs
Publication statusPublished - 2017

Keywords

  • HOME COUNTRY ADVANTAGES
  • UNITED-STATES
  • INDUSTRIAL-RESEARCH
  • DIRECT-INVESTMENT
  • ACADEMIC RESEARCH
  • DEVELOPMENT LABORATORIES
  • PHARMACEUTICAL-INDUSTRY
  • GEOGRAPHIC-DISTRIBUTION
  • JAPANESE CORPORATIONS
  • KNOWLEDGE SPILLOVERS

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