Foreign Direct Investment in Industrial Research and Development: A Study of German MNCs
Journal
Research Policy
ISSN
0048-7333
ISSN-Digital
1873-7625
Type
journal article
Date Issued
2005-05-01
Author(s)
Ambos, Björn
Abstract
This paper reports on the international research and development (R&D) investments of German multinational corporations (MNCs). Based on a detailed empirical survey of laboratory sites established by 49 German MNCs, we examine (i) the level and pace of R&D internationalization, (ii) the motivations and mandates of overseas R&D laboratories, as well as (iii) the strength of the laboratories' internal and external ties. Participating firms account for about 46% of all German enterprises with international R&D activities and approximately 66% of the nation's privately funded R&D expenditures in 1999. The findings indicate that the timing and organization of German owned overseas R&D investments more closely resemble Japanese or French than US or Swedish firms. Furthermore, in line with prior studies, German MNCs increasingly invest in international R&D for resource as opposed to market-seeking motives. The paper also finds significant differences with regard to the laboratory's mission and its geographical location on one hand, and its internal and external embeddedness, on the other.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
34
Number
4
Start page
395
End page
410
Pages
16
Subject(s)
Eprints ID
218079