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OVERSEAS R&D ACTIVITIES AND HOME PRODUCTIVITY GROWTH: EVIDENCE FROM JAPANESE FIRM‐LEVEL DATA* |
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| Authors: | YASUYUKI TODO SATOSHI SHIMIZUTANI |
| Affiliation: | 1. Graduate School of Frontier Sciences, University of Tokyo, 5‐1‐5 Kashiwanoha, Kashiwa, Chiba 277‐8563, Japan and the Research Institute of Economy, Trade and Industry, Japan e‐mail:yastodo@k.u‐tokyo.ac.jp;2. Institute for International Policy Studies, 3‐2‐2 Toranomon, Minato‐ku, Tokyo 105‐0001, Japan, and the Research Institute of Economy, Trade and Industry, Japan e‐mail:sshimizutani@iips.org |
| Abstract: | This paper investigates the impact of overseas subsidiaries' R&D activities on the productivity growth of parent firms using firm‐level data for Japanese multinational enterprises. Based on survey responses, we classify each overseas subsidiary's R&D as either ‘innovative R&D,’ which we hypothesize is likely to lead to the acquisition of foreign knowledge, or ‘adaptive R&D,’ which is more likely to lead to adaptation to local conditions. We find that overseas innovative R&D raises the parent firm's productivity growth, while adaptive R&D has no such effect. In addition, overseas innovative R&D does not improve the rate of return on home R&D. |
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