Strategies Pursued by Swiss Firms in Investing in R&D at Foreign Locations. An Empirical Analysis Based on Firm-level Data
Open access
Autor(in)
Datum
2006-10Typ
- Working Paper
ETH Bibliographie
yes
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Abstract
The aim of this paper is twofold: Firstly, we try to identify and characterise different types of strategies firms pursue in performing foreign R&D. Secondly, it is analysed whether the types of R&D strategies we identified in the first part differ in terms of their impact on firm productivity. In order to identify foreign R&D strategies we perform, in a first step, a non-hierarchical cluster analysis of data on the firms’ motives for investing abroad in R&D. In a second step, we characterise these clusters by use of a large number of variables that, according to the well-known OLI paradigm, determine a firm’s FDI in distribution, manufacturing and R&D. In this way, we can check whether the clusters identified by applying a (purely) statistical classification procedure effectively may be interpreted as “types of foreign R&D strategies”. We end up with four types of strategies, which significantly differ in terms of characteristics that are important according to the OLI approach. In the second part we estimate a production function where the standard factor inputs are complemented by domestic R&D and strategy-specific foreign R&D. It turns out that only one of the four strategies exerts a positive influence on firm productivity. However, it cannot be excluded that some of the other strategies have, in the longer run, a positive productivity effect as well. The paper also finds that foreign and domestic R&D, on balance, are complements. Mehr anzeigen
Persistenter Link
https://doi.org/10.3929/ethz-a-005277190Publikationsstatus
publishedZeitschrift / Serie
KOF Working PapersBand
Verlag
KOF Swiss Economic Institute, ETH ZurichThema
Foreign R&D and productivity; COMPANIES; Internationalisation of R&D; FORSCHUNG UND ENTWICKLUNG; RESEARCH AND DEVELOPMENT; UNTERNEHMEN; Substitution vs. complementarity of foreign and domestic R&D; SWITZERLAND (CENTRAL EUROPE). SWISS CONFEDERATION; SCHWEIZ (MITTELEUROPA). SCHWEIZERISCHE EIDGENOSSENSCHAFT; KAPITALEXPORTE + AUSLANDINVESTITIONEN + DIREKTINVESTITIONEN; Types of foreign R&D strategies; Outward FDI in R&D; Motives for foreign R&D; CAPITAL EXPORT + FOREIGN INVESTMENTS + DIRECT INVESTMENTSOrganisationseinheit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
ETH Bibliographie
yes
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