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Scientific research, firm heterogeneity, and foreign R&D locations of multinational firms

Journal Contribution - Journal Article

We examine the influence of host countries’ scientific research strengths on global R&D 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 heterogeneity, university scientific research appears only a significant factor for firms with a strong science orientation 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.
Journal: JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
ISSN: 1058-6407
Issue: 3
Volume: 26
Pages: 691 - 711
Publication year:2017
Keywords:science, R&D, innovation, location, multinationals
BOF-keylabel:yes
IOF-keylabel:yes
BOF-publication weight:1
CSS-citation score:1
Authors:International
Authors from:Higher Education
Accessibility:Open