1945
Transnational Corporations, April 2015
  • E-ISSN: 2076099X

Abstract

Extant research on internationalization of research and development (R&D) has not examined what the impact of foreign R&D investments is for the investing corporate parent firms, in particular on domestic R&D investments. The aim of this paper is to examine the effectiveness of international knowledge sourcing through foreign R&D in an empirical analysis of the effects of foreign R&D investments on domestic R&D intensity for a panel of Indian firms. The paper specifically investigates the importance and impact of the role and the location of foreign R&D centres on parent-company R&D by analysing differences between foreign-technology-seeking and foreign-technology-exploiting R&D, and between centres in advanced countries and in developing countries. The analysis finds contrasting results between advanced and developing countries and between technology-exploring and technology-exploiting investments.

Sustainable Development Goals:
Countries: India

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