Arbeitspapier
Foreign acquisitions, domestic multinationals, and R&D
The aim of this paper is to evaluate the causal effect of foreign acquisition on R&D intensity in targeted domestic firms. We are able to distinguish domestic multinationals and nonmultinationals, which allows us to investigate the fear that the change in ownership of domestic to foreign multinationals leads to a reduction in R&D activity in the country, as headquarter activities are relocated to the new owner's home country. We use unique and rich firm level data for the Swedish manufacturing sector and different micro-econometric estimation strategies in order to control for the potential endogeneity of the acquisition dummy. Overall, our results give no support to the fears that foreign acquisition of domestic firms lead to a brain drain of R&D activity in Swedish MNEs. Rather, this paper finds robust evidence that foreign acquisitions lead to increasing R&D intensity in acquired domestic MNEs and non-MNEs.
- Language
-
Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 5252
- Classification
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Wirtschaft
Multinational Firms; International Business
- Subject
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domestic multinationals
foreign acquisitions
R&D
- Event
-
Geistige Schöpfung
- (who)
-
Bandick, Roger
Görg, Holger
Karpaty, Patrik
- Event
-
Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bandick, Roger
- Görg, Holger
- Karpaty, Patrik
- Institute for the Study of Labor (IZA)
Time of origin
- 2010
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