Multinationals and the globalization of R&D

Hofmann, Patricia; Kneller, Richard

doi:10.1016/j.ijindorg.2019.01.001

Authors

MARIA GARCIA-VEGA M.Garcia-Vega@nottingham.ac.uk
Associate Professor

Patricia Hofmann

RICHARD KNELLER richard.kneller@nottingham.ac.uk
Professor of Economics

Abstract

In this paper we consider how the location, organization and output of knowledge production evolve within domestic firms following acquisition-FDI in order to understand the aggregate effect on an index of domestically produced innovations. We find strong differences according to how close the acquiring MNE is to the technologically frontier. Frontier MNEs are more likely to close R&D activities in acquired affiliates, but when they are retained they expand employment of high-skilled R&D workers and transfer R&D knowledge. Non-frontier MNEs make fewer changes to R&D. Overall the effect of acquisition-FDI on the domestic innovation index is positive.

Citation

García-Vega, M., Hofmann, P., & Kneller, R. (2019). Multinationals and the globalization of R&D. International Journal of Industrial Organization, 63, 583-614. https://doi.org/10.1016/j.ijindorg.2019.01.001

Journal Article Type	Article
Acceptance Date	Jan 6, 2019
Online Publication Date	Jan 12, 2019
Publication Date	Mar 31, 2019
Deposit Date	Jan 8, 2019
Publicly Available Date	Jan 13, 2021
Journal	International Journal of Industrial Organization
Print ISSN	0167-7187
Electronic ISSN	1873-7986
Publisher	Elsevier
Peer Reviewed	Peer Reviewed
Volume	63
Pages	583-614
DOI	https://doi.org/10.1016/j.ijindorg.2019.01.001
Keywords	MNE; Knowledge Production Function; Acquisition FDI; Knowledge Complementarities; R&D: innovation, Technology Transfers
Public URL	https://nottingham-repository.worktribe.com/output/1449833
Publisher URL	https://www.sciencedirect.com/science/article/pii/S0167718719300049?via%3Dihub
Additional Information	This article is maintained by: Elsevier; Article Title: Multinationals and the globalization of R&D; Journal Title: International Journal of Industrial Organization; CrossRef DOI link to publisher maintained version: https://doi.org/10.1016/j.ijindorg.2019.01.001; Content Type: article; Copyright: © 2019 Elsevier B.V. All rights reserved.