How do different drivers of R&D investment in foreign locations affect domestic firm performance? An analysis based on Swissn panel micro data

摘要

The aim of this article is to investigate the differences between specific motives of R&D investment in foreign locations with respect to: (i) the factors influencing the likelihood of foreign R&D and (ii) the impact of foreign presence on the parent firms’ innovativeness and productivity. An econometric analysis of Swiss firm panel data (period 2000–2008; 2817 companies) shows, first, that factors related to firm-specific knowledge-oriented advantages are more important for explaining the likelihood of foreign R&D activities than factors reflecting disadvantages related to home location. Second, knowledge-oriented motives of foreign R&D positively influence the innovation performance of domestic firms, whereas market- and resource-oriented strategies have a positive impact on labor productivity.