Overseas R and D activities and home productivity growth: Evidence from Japanese firm-level data

Yasuyuki Todo, Satoshi Shimizutani

Research output: Contribution to journalArticle

23 Citations (Scopus)

Abstract

This paper investigates the impact of overseas subsidiaries' R&D activities on the productivity growth of parent firms using firm-level data for Japanese multinational enterprises. Based on survey responses, we classify each overseas subsidiary's R&D as either 'innovative R&D,' which we hypothesize is likely to lead to the acquisition of foreign knowledge, or 'adaptive R&D,' which is more likely to lead to adaptation to local conditions. We find that overseas innovative R&D raises the parent firm's productivity growth, while adaptive R&D has no such effect. In addition, overseas innovative R&D does not improve the rate of return on home R&D.

Original languageEnglish
Pages (from-to)752-777
Number of pages26
JournalJournal of Industrial Economics
Volume56
Issue number4
DOIs
Publication statusPublished - 2008 Dec
Externally publishedYes

Fingerprint

Subsidiaries
Japanese firms
Productivity growth
Firm-level data
Japanese multinational enterprises
Firm productivity
Rate of return

ASJC Scopus subject areas

  • Economics and Econometrics
  • Accounting
  • Business, Management and Accounting(all)

Cite this

Overseas R and D activities and home productivity growth : Evidence from Japanese firm-level data. / Todo, Yasuyuki; Shimizutani, Satoshi.

In: Journal of Industrial Economics, Vol. 56, No. 4, 12.2008, p. 752-777.

Research output: Contribution to journalArticle

@article{49e53d0123144a599e7cd1ca1424eb0d,
title = "Overseas R and D activities and home productivity growth: Evidence from Japanese firm-level data",
abstract = "This paper investigates the impact of overseas subsidiaries' R&D activities on the productivity growth of parent firms using firm-level data for Japanese multinational enterprises. Based on survey responses, we classify each overseas subsidiary's R&D as either 'innovative R&D,' which we hypothesize is likely to lead to the acquisition of foreign knowledge, or 'adaptive R&D,' which is more likely to lead to adaptation to local conditions. We find that overseas innovative R&D raises the parent firm's productivity growth, while adaptive R&D has no such effect. In addition, overseas innovative R&D does not improve the rate of return on home R&D.",
author = "Yasuyuki Todo and Satoshi Shimizutani",
year = "2008",
month = "12",
doi = "10.1111/j.1467-6451.2008.00363.x",
language = "English",
volume = "56",
pages = "752--777",
journal = "Journal of Industrial Economics",
issn = "0022-1821",
publisher = "Wiley-Blackwell",
number = "4",

}

TY - JOUR

T1 - Overseas R and D activities and home productivity growth

T2 - Evidence from Japanese firm-level data

AU - Todo, Yasuyuki

AU - Shimizutani, Satoshi

PY - 2008/12

Y1 - 2008/12

N2 - This paper investigates the impact of overseas subsidiaries' R&D activities on the productivity growth of parent firms using firm-level data for Japanese multinational enterprises. Based on survey responses, we classify each overseas subsidiary's R&D as either 'innovative R&D,' which we hypothesize is likely to lead to the acquisition of foreign knowledge, or 'adaptive R&D,' which is more likely to lead to adaptation to local conditions. We find that overseas innovative R&D raises the parent firm's productivity growth, while adaptive R&D has no such effect. In addition, overseas innovative R&D does not improve the rate of return on home R&D.

AB - This paper investigates the impact of overseas subsidiaries' R&D activities on the productivity growth of parent firms using firm-level data for Japanese multinational enterprises. Based on survey responses, we classify each overseas subsidiary's R&D as either 'innovative R&D,' which we hypothesize is likely to lead to the acquisition of foreign knowledge, or 'adaptive R&D,' which is more likely to lead to adaptation to local conditions. We find that overseas innovative R&D raises the parent firm's productivity growth, while adaptive R&D has no such effect. In addition, overseas innovative R&D does not improve the rate of return on home R&D.

UR - http://www.scopus.com/inward/record.url?scp=57849166291&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=57849166291&partnerID=8YFLogxK

U2 - 10.1111/j.1467-6451.2008.00363.x

DO - 10.1111/j.1467-6451.2008.00363.x

M3 - Article

AN - SCOPUS:57849166291

VL - 56

SP - 752

EP - 777

JO - Journal of Industrial Economics

JF - Journal of Industrial Economics

SN - 0022-1821

IS - 4

ER -