The internationalisation of r&d: sectoral and geographic patterns of cross-border investments

Author/s Cristina Castelli, Davide Castellani
Publishing Year 2013 Issue 2013/1
Language Italian Pages 17 P. 127-143 File size 428 KB
DOI 10.3280/POLI2013-001006
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

This paper presents the sectoral and geographic distribution of R&D-related activities, in comparison with manufacturing activities, by analysing data (from the fDi Markets database) on the number of cross-border greenfield investment projects. Investments are concentrated in fewer sectors and countries than manufacturing, and are less sensitive to the obstacles related with the distance between home and host countries. More than two-thirds of all cross-border investments are in the ICT/Electronic and Life Sciences/Chemical sectors, showing a different propensity towards R&D and Design, Development and Testing activities. Almost half of the investments is due to multinationals from North America, and over one third from Western Europe, featuring a different sectoral specialisation. Asia is the largest recipient area for ICT/Electronics and Industrial Machinery, while Western Europe ranks second and attracts relatively more research units in Life Sciences/Chemicals and in the Machinery industry.

Keywords: Internazionalisation of R&D, multinational firms, Europe, North America, Asia

Jel codes: F23, O30, L23

  1. Alcacer J., Chung W. 2007. Location strategies and knowledge spillovers. Management Science, 53 (5): 760- 776 DOI: 10.1287/mnsc.1060.0637
  2. Amighini A., Rabellotti R., Sanfilippo M. 2011. China’s outward FDI: an industry-level analysis of host-country determinants. CESifo Working Paper 3688.
  3. Audretsch D., Feldman M. 1996. R&D spillovers and the geography of innovation and production. American Economic Review, 86 (4): 253-273.
  4. Basile R., Castellani D., Zanfei A. 2008. Location choices of multinational firms in Europe: the role of EU cohesion policy. Journal of International Economics, 74 (2): 328-340 DOI: 10.1016/j.jinteco.2007.08.006
  5. Basile R., Benfratello L., Castellani D. 2013. Geoadditive models for regional count data: an application to industrial location. Geographical Analysis, 45 (1): 28-48 DOI: 10.1111/gean.12001
  6. Belderbos S., Leten B., Suzuki S. 2010. How global is R&D? Determinants of the home country bias in R&D investments. EURAM, published online.
  7. Cantwell J.A., Iammarino S. 2003. Multinational Corporations and European Regional Systems of Innovation. Routledge: London.
  8. Cantwell J.A., Mudambi R. 2005. MNE competence-creating subsidiary mandates. Strategic Management Journal, 26 (12): 1109-1128 DOI: 10.1002/smj.497
  9. Cantwell J.A., Mudambi R. 2011. Physical attraction and the geography of knowledge sourcing in multinational enterprises. Global Strategy Journal, 1 (3-4): 206-232 DOI: 10.1002/gsj.24
  10. Castellani D., Pieri F. 2012. R&D offshoring and the productivity growth of European regions. Working Paper 345.
  11. Castellani D., Jimenez A., Zanfei A. 2012. How Remote are R&D Labs? Distance Factors and International Innovative Activities, mimeo.
  12. D’Agostino L.M., Laursen K., Santangelo G.D. 2012. The impact of R&D offshoring on the home production of OECD investing regions. Journal of Economic Geography, published online.
  13. De Benedictis L., Taglioni D. 2011. The gravity model and international trade, in De Benedictis L., Salvatici L. (eds.) The Trade Impact of European Union Preferential Policies: An Analysis through Gravity Models. Springer: Berlin DOI: 10.1007/978-3-642-16564-1_4
  14. Dunning J.H., Narula R. 1995. The R&D activities of foreign firms in the United States. International Studies of Management & Organization, 25 (1-2): 39-73.
  15. Dunning J.H., Lundan S.M. 2009. The internationalization of corporate R&D: a review of the evidence and some policy implications for home countries. Review of Policy Research, 26 (1-2): 13-33 DOI: 10.1111/j.1541-1338.2008.00367.x
  16. European Commission. 2012. Internationalisation of Business Investments in R&D and Analysis of their Economic Impact. Publications Office of the European Union: Luxembourg.
  17. Florida R. 1997. The globalisation of R&D: results of a survey of foreign-affiliated R&D laboratories in the USA. Research Policy, 26 (1): 85-103 DOI: 10.1016/S0048-7333(97)00004-8
  18. Gassmann O., von Zedtwitz M. 1999. New concepts and trends in international R&D organization. Research Policy, 28 (2-3): 231-250 DOI: 10.1016/S0048-7333(98)00114-0
  19. Gupta A.K., Govindarajan V. 2000. Knowledge flows within multinational corporations. Strategic Management Journal, 21 (4): 473-496 DOI: 10.1002/(SICI)1097-0266(200004)21:4<473::AID-SMJ84>3.0.CO;2-I
  20. Hall B. 2011. The internationalization of R&D. UNU-MERIT Working Paper 2011-049.
  21. Hatem F. 2011. Locational criteria of activities related to innovation: an econometric study of OECD AFA and FATS databases. Transnational Corporations, 20 (2):67-112.
  22. Kinkel S., Maloca S. 2008. FuE-Verlagerungen in Ausland. Ausverkauf Deutscher Entwicklungskompetenz?. Fraunhofer ISI: Karlsruhe.
  23. Kuemmerle W. 1999. The drivers of foreign direct investment into research and development: an empirical investigation. Journal of International Business Studies, 30(1): 1-24 DOI: 10.1057/palgrave.jibs.8490058
  24. Lewin A.Y., Massini S., Peeters C. 2009. Why are companies off-shoring innovation? The emerging global race for talent. Journal of International Business Studies, 40 (8): 901-925 DOI: 10.1057/jibs.2008.92
  25. Meyer K.E., Mudambi R., Narula R. 2011. Multinational enterprises and local contexts: the opportunities and challenges of multiple-embeddedness. Journal of Management Studies, 48 (2): 235-252 DOI: 10.1111/j.1467-6486.2010.00968.x
  26. Nachum L., Zaheer S., Gross S. 2008. Does it matter where countries are? Proximity to knowledge, markets and resources, and MNE location choices. Management Science, 54 (7): 1252-1265 DOI: 10.1287/mnsc.1080.0865
  27. Narula R. 2002. Innovation systems and inertia in R&D location: Norwegian firms and the role of systemic lock-in. Research Policy, 31 (5): 795-816 DOI: 10.1016/S0048-7333(01)00148-2
  28. Narula R., Zanfei A. 2005. Globalization of innovation: the role of multinational enterprises, in Fagerberg J., Mowery D.C., Nelson R.R. (eds.) The Oxford Handbook of Innovation. Oxford University Press: New York.
  29. OECD. 2011. Attractiveness for Innovation: Location Factors for International Investment. OECD: Paris.
  30. Patel P., Pavitt K. 1991. Large firms in the production of worlds technology. An important case of nonglobalization. Journal of International Business Studies, 22 (1):1-21 DOI: 10.1057/palgrave.jibs.8490289
  31. Piscitello L., Santangelo G.D. 2010. Does R&D offshoring displace or strengthen knowledge production at home? Evidence from OECD countries, in Contractor
  32. F.J., Kumar V., Kundu S.K., Pedersen T. (eds.) Global Outsourcing and Offshoring. An Integrated Approach to Theory and Corporate Strategy. Cambridge University Press: Cambridge (UK) DOI: 10.1017/CBO9780511761607.008
  33. Ujjual V. 2011. Understanding Strategies of R&D Offshoring by Northern and Southern firms. Unpublished report prepared for the INGINEUS Project. Impact of Networks, Globalisation, and their Interaction with EU Strategies, 2009-2011, mimeo.
  34. UNCTAD. 2005. World Investment Report. Transnational Corporations and the Internationalization of R&D. United Nations: New York-Geneva.
  35. Wolfmayr Y., Christen E., Falk M., Hollenstein H., Knell M., Pfaffermayr M., Reinstaller A., Unterlass F. 2013. The Role and Internationalisation Strategies of Multinational Companies in Innovation, INNO-Grips II Report. European Commission, DG Enterprise and Industry: Brussels.

  • Nuevos modos de conexión con redes globales de innovación: el caso de Chile José Guimón, Christian Cancino, Asunción López, Jaime Miranda, in Perfiles Latinoamericanos /2018
    DOI: 10.18504/pl2754-009-2019
  • R&D internationalisation and sector productivity: a host country perspective Boutheina Abassi, Moez El Elj, in SN Business & Economics 175/2022
    DOI: 10.1007/s43546-022-00353-9
  • On the R&D giants’ shoulders: do FDI help to stand on them? Sandro Montresor, Antonio Vezzani, in Economia e Politica Industriale /2015 pp.33
    DOI: 10.1007/s40812-014-0002-1
  • Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China Si Zhang, Shasha Zhao, Ioannis Bournakis, Robert Pearce, Marina Papanastassiou, in Economia Politica /2018 pp.623
    DOI: 10.1007/s40888-018-0120-8
  • Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature Marina Papanastassiou, Robert Pearce, Antonello Zanfei, in Journal of International Business Studies /2020 pp.623
    DOI: 10.1057/s41267-019-00258-0
  • The neglected effects of R&D captive offshoring in emerging countries on the creation of knowledge at home Lorena M. D’Agostino, in Economia e Politica Industriale /2015 pp.61
    DOI: 10.1007/s40812-014-0006-x
  • What Factors Determine the Attractiveness of the Host Sector to Overseas R&D? Empirical Evidence From Major OECD Countries boutheina abassi, in SSRN Electronic Journal /2021
    DOI: 10.2139/ssrn.4010215
  • Exploring the links between offshoring and innovation Davide Castellani, Maria Luisa Mancusi, Grazia D. Santangelo, Antonello Zanfei, in Economia e Politica Industriale /2015 pp.1
    DOI: 10.1007/s40812-014-0008-8

Cristina Castelli, Davide Castellani, The internationalisation of r&d: sectoral and geographic patterns of cross-border investments in "ECONOMIA E POLITICA INDUSTRIALE " 1/2013, pp 127-143, DOI: 10.3280/POLI2013-001006