Factors Determining the Mode of Overseas R&D by Multinationals: Empirical Evidence

Author Name ITO Banri  (Graduate School, Keio University) /WAKASUGI Ryuhei  (Research Counselor and Faculty Fellow, RIETI)
Creation Date/NO. February 2007 07-E-004
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The large expansion of MNCs' 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.

Published: Banri Ito and Ryuhei Wakasugi, 2007. "What Factors Determine the Mode of Overseas R&D by Multinationals? Empirical Evidence," Research Policy, Vol. 36(8), pp. 1275-1287.