R & D, Foreign Direct Investment and Technology Sourcing?

R & D, Foreign Direct Investment and Technology Sourcing? The U.S. experienced a surge in foreign directinvestment (FDI) during the 1980s.To date, we do notfully understand what the research and development(R & D) effects of FDI are. FDI can affect the hostcountry's R & D activities in at least two ways. First,if domestic firms perceive foreign entrants as seriousthreats to their domestic market share, they willchange their R & D policies hence industry-wide R & Dintensity also changes. Second, the increase in R & Dintensity may be attributed to foreign firms' R & Dactivities to acclimatize to U.S. conditions. Using apanel of 4-digit SIC industries from 1981–91, there issome evidence that the latter scenario may be apossible explanation for the observed changes inindustry-wide R & D intensity. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

R & D, Foreign Direct Investment and Technology Sourcing?

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2000 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007811001052
Publisher site
See Article on Publisher Site

References

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