The Impact of Host Countries' University Research and University-Industry Collaboration on the Location of Research and Development: Evidence from Japanese multinational firms

Author Name SUZUKI Shinya (NISTEP) / Rene BELDERBOS (University of Leuven, UNU-MERIT, and Maastricht University) / KWON Hyeog Ug (Faculty Fellow, RIETI) / FUKAO Kyoji (Faculty Fellow, RIETI)
Creation Date/NO. December 2012 12-E-080
Research Project East Asian Firm-Level Productivity Project
Download / Links


We examine the impact of the strength of host countries' university research and university-industry collaboration on the propensity of Japanese multinational firms to conduct research and development (R&D) activities in these countries. We consider heterogeneous effects based on the type of R&D activity: basic research, applied research, and development for local markets and for global markets. Drawing on official survey data on R&D facilities of 498 Japanese multinational firms in 24 host countries, we find support for the notion that the strength of university research increases the probability that firms conduct R&D in a host country. Applied research activities are attracted to countries with relatively intensive university-industry collaboration. Moreover, firms from high-tech industries respond significantly more strongly to the presence of university research than those from low-tech industries.

Published: Suzuki, Shinya, René Belderbos, and Hyeog Ug Kwon, 2017. "The location of multinational firms' R&D activities abroad: Host country university research, university–industry collaboration, and R&D heterogeneity," Advances in Strategic Management, Vol. 36, pp. 125-159