What determines overseas R&D activities? The case of Japanese multinational firms

Satoshi Shimizutani, Yasuyuki Todo

Research output: Contribution to journalArticle

47 Citations (Scopus)

Abstract

This paper explores what factors determine the nature, extent, and location of Japanese multinationals' R&D activities abroad. Taking advantage of a rich micro-level dataset from the survey on Japanese overseas subsidiaries, the study distinguishes between two types of overseas R&D: basic/applied research and development/design. We find several differences between the determinants of those R&D activities. These differences confirm the view that basic/applied research of overseas subsidiaries aims at the exploitation of foreign advanced knowledge, whereas their development/design activities are mostly influenced by the market size of the host country. Our results provide a convincing and comprehensive explanation of the geographical distribution of overseas R&D by Japanese MNEs.

Original languageEnglish
Pages (from-to)530-544
Number of pages15
JournalResearch Policy
Volume37
Issue number3
DOIs
Publication statusPublished - 2008 Apr
Externally publishedYes

Fingerprint

Geographical distribution
Multinational firms
Subsidiaries
Applied research
Factors
Host country
Market size
Exploitation
Nature
Multinational enterprises
Multinationals

Keywords

  • Locational choice
  • Multinational enterprises
  • Multinomial logit estimation
  • Overseas R&D activities

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Economics and Econometrics

Cite this

What determines overseas R&D activities? The case of Japanese multinational firms. / Shimizutani, Satoshi; Todo, Yasuyuki.

In: Research Policy, Vol. 37, No. 3, 04.2008, p. 530-544.

Research output: Contribution to journalArticle

@article{57075a0f4b654f46bc0174a91fc7c01d,
title = "What determines overseas R&D activities? The case of Japanese multinational firms",
abstract = "This paper explores what factors determine the nature, extent, and location of Japanese multinationals' R&D activities abroad. Taking advantage of a rich micro-level dataset from the survey on Japanese overseas subsidiaries, the study distinguishes between two types of overseas R&D: basic/applied research and development/design. We find several differences between the determinants of those R&D activities. These differences confirm the view that basic/applied research of overseas subsidiaries aims at the exploitation of foreign advanced knowledge, whereas their development/design activities are mostly influenced by the market size of the host country. Our results provide a convincing and comprehensive explanation of the geographical distribution of overseas R&D by Japanese MNEs.",
keywords = "Locational choice, Multinational enterprises, Multinomial logit estimation, Overseas R&D activities",
author = "Satoshi Shimizutani and Yasuyuki Todo",
year = "2008",
month = "4",
doi = "10.1016/j.respol.2007.11.010",
language = "English",
volume = "37",
pages = "530--544",
journal = "Research Policy",
issn = "0048-7333",
publisher = "Elsevier",
number = "3",

}

TY - JOUR

T1 - What determines overseas R&D activities? The case of Japanese multinational firms

AU - Shimizutani, Satoshi

AU - Todo, Yasuyuki

PY - 2008/4

Y1 - 2008/4

N2 - This paper explores what factors determine the nature, extent, and location of Japanese multinationals' R&D activities abroad. Taking advantage of a rich micro-level dataset from the survey on Japanese overseas subsidiaries, the study distinguishes between two types of overseas R&D: basic/applied research and development/design. We find several differences between the determinants of those R&D activities. These differences confirm the view that basic/applied research of overseas subsidiaries aims at the exploitation of foreign advanced knowledge, whereas their development/design activities are mostly influenced by the market size of the host country. Our results provide a convincing and comprehensive explanation of the geographical distribution of overseas R&D by Japanese MNEs.

AB - This paper explores what factors determine the nature, extent, and location of Japanese multinationals' R&D activities abroad. Taking advantage of a rich micro-level dataset from the survey on Japanese overseas subsidiaries, the study distinguishes between two types of overseas R&D: basic/applied research and development/design. We find several differences between the determinants of those R&D activities. These differences confirm the view that basic/applied research of overseas subsidiaries aims at the exploitation of foreign advanced knowledge, whereas their development/design activities are mostly influenced by the market size of the host country. Our results provide a convincing and comprehensive explanation of the geographical distribution of overseas R&D by Japanese MNEs.

KW - Locational choice

KW - Multinational enterprises

KW - Multinomial logit estimation

KW - Overseas R&D activities

UR - http://www.scopus.com/inward/record.url?scp=40649121473&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=40649121473&partnerID=8YFLogxK

U2 - 10.1016/j.respol.2007.11.010

DO - 10.1016/j.respol.2007.11.010

M3 - Article

VL - 37

SP - 530

EP - 544

JO - Research Policy

JF - Research Policy

SN - 0048-7333

IS - 3

ER -