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.
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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 -