Utilization of R&D Results in the Home and Foreign Plants of Multinationals

This paper analyzes the utilization of R&D results in the home and foreign plants of Swedish multinational enterprises (MNEs). The findings indicate that firms' R&D undertaken in the home country is used as an input in both the home and foreign plants of the MNEs. This suggests that technology is transferred to the foreign plants. Around four-fifths of the gain in value-added attributed to home R&D was realized in the MNEs' home plants, while the remaining fifth benefitted the foreign plants. R&D in foreign affiliates does not appear to be used as an input in home plants.