Foreign Research and Development and Host Country Environment: An Empirical Examination of U.S. International R&D

Responses of Advanced Country MNEs to Low-cost Country Imports in Their Home Markets

“…However, more recent economic factors such as MNEs′ need to be close to fastgrowing LCC markets; improvements in institutional, scientific and telecommunications environments; and increasing competition intensity in LCCs may drive R&D investments in lccs (Doh et al 2005). though Dunning and lundan (1998) find that companies are increasingly sourcing knowledge-intensive assets from foreign operations, such a behavior is more likely to be restricted to developed rather than developing countries.…”

“…From our perspective, the most likely explanation is that the imitation gap that has kept lcc competitors from catching up to the latest innovations is becoming smaller. emerging markets offer huge growth opportunities for MNes from advanced economies and, as more and more companies enter lcc markets, a transfer of the latest technology to lcc competitors occurs (Doh et al 2005). through this transfer, companies from LCCs are likely to benefit from technological spillovers and leapfrog old technology, thus shortening the time to develop comparable products (Brezis et al 1993).…”

Are the BRIC countries overtaking intermediate countries in the race for international R&D? The case of Spain

“…With their overriding priorities in questions of R&D policy and funding (Guimón 2009), public institutions act as creators of the attractive environment for the location of FDI in R&D (Doh et al 2005) and, therefore, as promoters of a country's technology base. Well aware of this, for over a decade now governments in emerging countries have been introducing science and technology policy measures aimed at developing their own technological capabilities in order to attract foreign R&D (see the European Commission's ERAWATCH Annual Country Reports 2012).…”

Globalization and International R&D Flows into Emerging Markets: Nomothetic Evidence

“…Accessible, reliable and stable economic, legal and political institutions are necessary in order to attract the inflows of R&D spending into countries (Lundvall, Johnson, Andersen, and Dalum, 2002;Nelson, 2008). These institutions and the political environments they are embedded in are critical determinants of the type of investments that MNCs will make (Doh, Jones, Mudambi, & Teegen, 2005;Murtha & Lenway, 1994). Governmental institutions that reduce political risk and enhance stability influence MNC decisions on whether to off-shore R&D as well as where to invest (Grosse & Trevino, 2005).…”

“…The time frame for the study was the thirteen years from 1990 to 2002, during which time period there was an enhanced impetus towards globalization, cross-border investments and off-shoring of R&D. There was a noticeable shift in R&D FDI towards non-traditional locations like Japan, countries in East Asia, Singapore, India and Israel during the period beginning the 1990s onwards (Dalton & Serapio, 1999;Doh, Jones, Mudambi and Teegen, 2005;Kumar, 2002;UNCTAD, 2005aUNCTAD, /2005b. 6 Using the World Bank's income based classification the following countries in our dataset belonged to the 'high income' country category: (alphabetically): Canada, Czeck Republic, Finland, France, Germany, Hungary, Israel, Italy, Japan, Netherlands, Poland, Singapore, South Korea, Sweden, Switzerland, Taiwan, United Kingdom, and United States.…”