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How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data

By Spyros Arvanitis and Heinz Hollenstein


The aim of this paper is to investigate the differences between specific motives of R&D investment in foreign locations with respect to the factors influencing the likelihood of foreign R&D and to the impact of foreign presence on the parent firms' innovativeness and productivity. An econometric analysis of Swiss firm panel data shows, firstly, that factors related to firm-specific knowledge-oriented advantages are more important for explaining the likelihood of foreign R&D activities than factors reflecting disadvantages related to home location. Secondly, knowledge-oriented motives of foreign R&D are positively correlated to innovation performance of domestic firms, whereas market-oriented and resource-oriented strategies correlate positively with productivity

Topics: ddc:330, Industrieforschung, Investition, Ausl\ue4ndische Tochtergesellschaft, Spillover-Effekt, Innovationsdiffusion, Unternehmenserfolg, Schweiz
Publisher: Vienna: Austrian Institute of Economic Research (WIFO)
Year: 2010
OAI identifier:
Provided by: EconStor

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