Foreign Acquisitions,Domestic Multinationals,and R&D |
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| Authors: | Roger Bandick Holger Görg Patrik Karpaty |
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| Institution: | 1. Aarhus University, , 8210 Aarhus V, Denmark;2. Kiel Institute for the World Economy, , DE‐24105 Kiel, Germany;3. Orebro University, , SE‐701 82 Orebro, Sweden |
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| Abstract: | Our aim in this paper is to evaluate the causal effect of foreign acquisition on research and development (R&D) intensity in targeted domestic firms. We are able to distinguish domestic multinational enterprises (MNEs) and non‐MNEs, which allows us to investigate the fear that the change in ownership of domestic MNEs to foreign MNEs leads to a reduction in R&D activity in the country. Overall, our results give no support to the fears that foreign acquisition of domestic firms leads to a relocation of R&D activity in Swedish MNEs. Rather, in this paper, we find robust evidence that foreign acquisitions lead to increasing R&D intensity in acquired domestic MNEs and non‐MNEs. |
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| Keywords: | Foreign acquisitions multinational firms R&D F23 L10 |
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