Title

R And D, Foreign Direct Investment And Technology Sourcing?

Keywords

Foreign direct investment; Research and development; Technology sourcing

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 and D) effects of FDI are. FDI can affect the host country's R and 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 and D policies hence industry-wide R and D intensity also changes. Second, the increase in R and D intensity may be attributed to foreign firms' R and 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 and D intensity.

Publication Date

1-1-2000

Publication Title

Review of Industrial Organization

Volume

16

Issue

4

Number of Pages

385-397

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1023/A:1007811001052

Socpus ID

0034081517 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0034081517

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