What determines overseas R&D activities? The case of Japanese multinational firms |
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| Authors: | Satoshi Shimizutani Yasuyuki Todo |
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| Institution: | a Institute for International Policy Studies,Toranomon 30 Mori Bldg, 6F, Toranomon 3-2-2, Minato-ku, Tokyo 105-0001, Japan
b Graduate School of Frontier Sciences, University of Tokyo, 5-1-5 Kashiwanoha, Kashiwa, Chiba 277-8563, Japan |
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| 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. |
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| Keywords: | F23 O30 |
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