Knowledge spillovers from foreign direct investment in R&D: Evidence from Japanese firm-level data

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26 Citations (Scopus)

Abstract

This study uses firm-level panel data from the Japanese manufacturing industries and examines whether foreign direct investment generates intra-industry knowledge spillovers to domestic firms. The analysis found positive effects of R&D stocks of foreign firms on the productivity of domestic firms, while effects of capital stocks of foreign firms were absent, suggesting that knowledge of foreign firms spills over through their R&D activities, but not through their production activities. In addition, we found that the extent of spillovers from R&D stock of foreign firms is substantially larger than spillovers from R&D stock of domestic firms.

Original languageEnglish
Pages (from-to)996-1013
Number of pages18
JournalJournal of Asian Economics
Volume17
Issue number6
DOIs
Publication statusPublished - 2006 Dec 1
Externally publishedYes

Keywords

  • Foreign direct investment
  • Knowledge spillovers
  • R&D activities

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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