Choice of Foreign R&amp;D Entry Mode and Its Relation to Firm Performance: A Firm-level Analysis for Switzerland and Austria

Hollenstein, Heinz; Berger, Martin

doi:10.5018/economics-ejournal.ja.2015-34

Cited by 3 publications

(4 citation statements)

References 69 publications

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“…The estimate is OLS = 0.067, which can be used to obtain the Durbin's H Test value of 0.586. There is a self-correlation phenomenon in the autoregressive model (6). After the test, it is corrected by standard errors.…”

Section: Macro-effect Test Of Foreign Capital Affected By Government ...mentioning

confidence: 99%

“…These multinationals often set up R&D centers and increase R&D investment in China [4,5]. The early demonstration effect and spillover effect of foreign R&D have a positive impact on the formation and promotion of China's domestic innovation capability [6]. Governments also encourage foreign firms to increase their R&D investment with policy tools such as personal income tax refunds and business tax reductions [7].…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Government Subsidy Policy for Foreign Capital R&D from the Perspective of Global Supply Chains: An Empirical Analysis with Time Lag and Propensity Score Matching

Shi

et al. 2021

Sustainability

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(1) Background: with the emergence and continuous development of more multinational corporations, capital and resources flow rapidly in the form of global supply chains around the world. Furthermore, government subsidies for R&D are one of the key factors that affect foreign-funded R&D activities and their innovation output and performance in global supply chains. (2) Methods: in this paper, firstly, based on two sets of time series and dynamic panel data, we propose a distribution time lag model to test the effect of R&D subsidy policies from the macro perspective. Secondly, we employ the propensity score matching method to test the micro effect of R&D subsidy policies. (3) Results: our empirical results show that there are significant differences in the impacts of R&D subsidy policies on foreign capital funded innovation and domestic innovation. The main effect of government subsidy on foreign capital R&D is to improve the innovation output. However, regarding domestic R&D, it is to promote innovation performance. (4) Conclusions: Government subsidy is the main cause of the individual differences among the foreign funded R&D institutions in terms of innovation output and innovation performance. From the perspective of global supply chains, our analysis and results provide managerial and policy insights on subsidizing foreign investment in R&D in China.

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Section: Macro-effect Test Of Foreign Capital Affected By Government ...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Effect of Government Subsidy Policy for Foreign Capital R&D from the Perspective of Global Supply Chains: An Empirical Analysis with Time Lag and Propensity Score Matching

Shi

et al. 2021

Sustainability

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“…In _________________________ 4 The same data have been successfully used for explaining the location of the FDI of Swiss firms (Arvanitis et al 2015) as well as their choice between equity-based and. non-equity foreign entry modes (Hollenstein and Berger 2015).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Does the Explanatory Power of the OLI Approach Differ Among Sectors and Business Functions? Evidence from Firm-level Data

2016

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As services and goods differ with respect to important characteristics, one may expect that the determinants of internationalisation are not identical for services and manufacturing. Surprisingly, there is practically no firm-level research contrasting the two sectors in this respect. To fill this gap, the authors aim at identifying for the two sectors the determinants of a firm's propensity to engage in exports or FDI as well as the factors determining a firm's FDI strategy in terms of business functions. They find that an OLI-based model is well suited for explaining the propensity to go international as well as the differences between specific forms of FDI in terms of business functions both for manufacturing and services. As expected, the explanatory power of the OLI approach is stronger for manufacturing than service activities.Data available upon request (see the following link):http://www.economics-ejournal.org/data-availabilty-dp-2015-67/view JEL F23

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“…Finally, is clear that in standard FDI theory (Rugman 1986, Caves 1971, Hollenstein and Berger 2015 firms invest in foreign markets in order to obtain rents from exploiting firm-specific capabilities (products and knowledge). FDI boosts firms' strategic position by providing access to scarce resources like labor and knowledge (Chen and Chen 1998).…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

A Microeconometric Analysis of the Springboard Subsidiary: The Case of Spanish Firms

et al. 2015

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This paper provides a microeconometric analysis of the distinctive characteristics of springboard subsidiaries that have a positive impact on the subsidiaries' performance. Based on panel data estimations for subsidiaries of European multinational companies with a presence in Spain, the authors found that if the subsidiary is located in the springboard country, then the performance improvement (increase in profit margin) of the subsidiary is about 49 percentage points. When the Spanish subsidiary is considered a springboard subsidiary, its performance is 7.7 percentage points higher than the performance of other subsidiaries that are not springboard subsidiaries. If the subsidiary has a technological relationship with another subsidiary, its performance is 6.7 percentage points higher than the performance of other subsidiaries that do not have a technological relationship. Finally, when the firm has low autonomy, the performance of the subsidiary is 6.2 percentage points lower than that of firms that are independent or have a high level of autonomy.

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Choice of Foreign R&D Entry Mode and Its Relation to Firm Performance: A Firm-level Analysis for Switzerland and Austria

Cited by 3 publications

References 69 publications

The Effect of Government Subsidy Policy for Foreign Capital R&D from the Perspective of Global Supply Chains: An Empirical Analysis with Time Lag and Propensity Score Matching

The Effect of Government Subsidy Policy for Foreign Capital R&D from the Perspective of Global Supply Chains: An Empirical Analysis with Time Lag and Propensity Score Matching

Does the Explanatory Power of the OLI Approach Differ Among Sectors and Business Functions? Evidence from Firm-level Data

A Microeconometric Analysis of the Springboard Subsidiary: The Case of Spanish Firms

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