Home base-compensating R&D: Indicators, public policy, and ramifications for multinational firms
The situation in which a multinational firm compensates for comparative weakness in home-country R&D by locating vital R&D activities in foreign countries with a stronger R&D base has generally been considered a fairly marginal phenomenon. Yet home base-compensating R&D by MNCs is mo...
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| Veröffentlicht in: | Journal of international management 2011-03, Vol.17 (1), p.42-53 |
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| container_title | Journal of international management |
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| creator | Lehrer, Mark Asakawa, Kazuhiro Behnam, Michael |
| description | The situation in which a multinational firm compensates for comparative weakness in home-country R&D by locating vital R&D activities in foreign countries with a stronger R&D base has generally been considered a fairly marginal phenomenon. Yet home base-compensating R&D by MNCs is more prevalent and more important in its effects than generally assumed. Given intensifying competition among nations for R&D investment by MNCs, home base-compensating R&D may help stimulate R&D reform in the home country, as illustrated with the example of German biotechnology. The probability that home base-compensating R&D can stimulate R&D reform in the firm's home country is highest when practiced by “high-profile players” in sectors that are science-based and that are either strategic (inter-industry economic and knowledge spillovers), feature above-average growth, and/or are of high political importance. To the extent that home base-compensating R&D by MNCs can potentially encourage policy reforms in their home country, this adds a new level of complexity to discussions about the role of corporations in influencing public policy as a component of their corporate social responsibility. |
| doi_str_mv | 10.1016/j.intman.2010.08.001 |
| format | Article |
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| identifier | ISSN: 1075-4253 |
| ispartof | Journal of international management, 2011-03, Vol.17 (1), p.42-53 |
| issn | 1075-4253 1873-0620 |
| language | eng |
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| source | RePEc; ScienceDirect Journals (5 years ago - present) |
| subjects | Biotechnology Business strategies Compensation Competition Germany Home base-compensating R&D Home base-compensating R&D Multinational corporations National systems of innovation R&D reform Public policy Germany Biotechnology Investment Knowledge transfer Multinational corporations Multinational enterprises National systems of innovation Public policy R&D reform Research and development |
| title | Home base-compensating R&D: Indicators, public policy, and ramifications for multinational firms |
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