The maturation of global corporate R&D: Evidence from the activity of U.S. foreign subsidiaries
| Title: | The maturation of global corporate R&D: Evidence from the activity of U.S. foreign subsidiaries |
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| Format: | Journal Article |
| Publication Date: | April 2008 |
| Published In: | Research Policy |
| Description: | This study empirically investigates the impact of foreign country factors like market size, technological strength of industries, and science and engineering (S&E) capability on the conduct of U.S. overseas R&D during the 1991-2002 period. We find that overseas markets primarily predict the entry of U.S. R&D, while the S&E capability of nations is strongly correlated with the post-entry intensity of U.S. foreign subsidiaries' innovative activity. We also find important inter-industry differences: U.S. electrical, electronics, computer, and telecommunication industries are strongly drawn towards overseas S&E capacity; industries including Machinery, Automobiles, and Transport equipment are primarily attracted by the technological strength of foreign industry; U.S. R&D in Chemicals mostly follows overseas markets. We discuss the implications of our results to the global organization of innovative activity and innovation policy. © 2007 Elsevier B.V. All rights reserved. |
| Ivan Allen College Contributors: | |
| Citation: | Research Policy. 37. Issue 3. 390 - 406. ISSN 0048-7333. DOI 10.1016/j.respol.2007.12.004. |
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