R&D, foreign direct investment and technology sourcing?

    Authors

    C. Y. Co

    Comments

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    Abbreviated Journal Title

    Rev. Ind. Organ.

    Keywords

    foreign direct investment; research and development; technology sourcing; MARKET-STRUCTURE; INTERNATIONAL-TRADE; BEHAVIOR; FIRM; Economics; Management

    Abstract

    The U.S. experienced a surge in foreign direct investment (FDI) during the 1980s. To date, we do not fully understand what the research and development (R & D) effects of FDI are. FDI can affect the host country's R & D activities in at least two ways. First, if domestic firms perceive foreign entrants as serious threats to their domestic market share, they will change their R & D policies hence industry-wide R & D intensity also changes. Second, the increase in R & D intensity may be attributed to foreign firms' R & D activities to acclimatize to U.S. conditions. Using a panel of 4-digit SIC industries from 1981-91, there is some evidence that the latter scenario may be a possible explanation for the observed changes in industry-wide R & D intensity.

    Journal Title

    Review of Industrial Organization

    Volume

    16

    Issue/Number

    4

    Publication Date

    1-1-2000

    Document Type

    Article

    Language

    English

    First Page

    385

    Last Page

    397

    WOS Identifier

    WOS:000086531700005

    ISSN

    0889-938X

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