Utilization of R&D Results in the Home and Foreign Plants of Multinationals

Gunnar Fors

112 citations0/0 files storedJournal of Industrial Economics

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International Business and FDI Innovation and Knowledge Management Firm Innovation and Growth

Abstract

This paper analyzes the utilization of R&D results in the home and foreign plants of Swedish multinational enterprises (MNEs). The findings indicate that firms' R&D undertaken in the home country is used as an input in both the home and foreign plants of the MNEs. This suggests that technology is transferred to the foreign plants. Around four‐fifths of the gain in value‐added attributed to home R&D was realized in the MNEs' home plants, while the remaining fifth benefitted the foreign plants. R&D in foreign affiliates does not appear to be used as an input in home plants.

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References

1976Markets and Hierarchies: Analysis and Antitrust Implications.1990Econometric Models and Economic Forecasts 1979Issues in Assessing the Contribution of Research and Development to Productivity Growth 1984A Simple Theory of International Trade with Multinational Corporations 1977Technology Transfer by Multinational Firms: The Resource Cost of Transferring Technological Know-How 1984Multinationals, multi-plant economies, and the gains from trade 1982Inter-Industry Technology Flows and Productivity Growth 1980Technology Transfer to Overseas Subsidiaries by U.S.-Based Firms

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