technology factor proportions and competitiveness the paper reports an attempt to explain changes in the industrial pattern of relative international competitiveness and specialization in the swedish manufacturing industry during the period 1969 84 in particular we evaluate the role of rd this was true for industries intensive in human as well as physical capital the analysis confirmed the technology gap hypothesis in that a high level of rd on the other hand no indication was found of increased international specialization on r d intensive products in swedish industry

retail competition in electricity markets abstract the introduction of competition into retail electricity supply gave rise to great expectations however to date its performance has proven less than stellar owing primarily to the theoretical concepts underpinning this reform which draw heavily on the austrian school neither consumers decision processes nor this sector s technical paradigm were adequately accounted for leading to an uncorrect estimation of the expected impact of opening to competition short and medium term prospects for the evolution of retail markets must be reconsidered from the perspective of greater stability not a generalization of competition but rather a persistent segmentation between active and inactive clients not a large and rapid diffusion of radical innovations in commercialisation with the potential for undermining the incumbents positions

targeting energy justice exploring spatial racial ethnic and socioeconomic disparities in urban residential heating energy efficiency abstract fuel poverty the inability of households to afford adequate energy services such as heating is a major energy justice concern increasing residential energy efficiency is a strategic fuel poverty intervention however the absence of easily accessible household energy data impedes effective targeting of energy efficiency programs this paper uses publicly available data bottom up modeling and small area estimation techniques to predict the mean census block group residential heating energy use intensity eui an energy efficiency proxy in kansas city missouri results mapped using geographic information systems gis and statistical analysis show disparities in the relationship between heating eui and spatial racial ethnic and socioeconomic block group characteristics block groups with lower median incomes a greater percentage of households below poverty a greater percentage of racial ethnic minority headed households and a larger percentage of adults with less than a high school education were on average less energy efficient higher euis results also imply that racial segregation which continues to influence urban housing choices exposes black and hispanic households to increased fuel poverty vulnerability lastly the spatial concentration and demographics of vulnerable block groups suggest proactive area and community based targeting of energy efficiency assistance programs may be more effective than existing self referral approaches

the taxation of australian landlords would the british tax treatment of rental investments increase tax burdens if introduced in australia the tax treatment of housing can have important implications for the relative attractiveness of investment in housing the tax regime for private landlords in britain appears to be less favourable than in many other advanced welfare states including australia where negative gearing is commonly cited as a tax preference encouraging investment in rental housing if private landlords in britain are tax disadvantaged compared with their australian counterparts tax burdens and rents will increase if british central government tax arrangements replace current provisions this proposition is tested using micro data from a survey of private landlords in australia to model the impact of the two tax regimes on their user cost of capital it is found that at the inflation rates prevailing in the early 1990s tax burdens are marginally lower under australian as compared with british tax arrangements however at lower rates of inflation this conclusion is reversed this is particularly the case for landlords with relatively short holding periods who invest in low income rental housing

foreign research and development in swedish multinationals abstract in 1987 sweden s 20 largest multinationals together operated some 170 foreign rd 2 market proximity i e adaptation of centrally developed products and processes to local market conditions 32 3 exploitation of foreign rd 4 political factors i e environmental factors more or less directly influenced by government action 34 the remaining 20 of employment seemed to be motivated by a combination of factors the primary aim of the first three types of foreign r d units is to enhance a company s competitive position in ways not possible from a domestic location hence they should be little cause of concern for swedish policy makers

entry mode organizational learning and r d in foreign affiliates evidence from japanese firms this paper develops hypotheses concerning the role of entry mode and experience based organizational learning as determinants of the r d intensity of foreign affiliates and tests these hypotheses on a sample of 420 japanese manufacturing affiliates abroad entry mode has a major impact on r d activities the r d intensities of acquired affiliates substantially exceed those in wholly owned greenfield affiliates while the r d intensities of minority owned ventures are higher if japanese parent firms lack strong r d capabilities at home for greenfield operations support is found for an incremental growth pattern of foreign r d as a function of organizational learning and affiliate capability building the results are consistent with the view that part of the explanation for japanese firms relative lack of involvement in overseas r d must be sought in their status as latecomers in the establishment of overseas manufacturing networks at the same time a number of japanese firms have actively used foreign acquisitions and joint ventures to gain access to overseas technology and to establish overseas r d capabilities at a faster pace copyright 2002 john wiley sons ltd

wealth and portfolio composition theory and evidence we examine a survey of 6010 u s households and estimate a model for household portfolio allocation we extend the conventional portfolio choice model in order to capture the observed incompleteness of household portfolios we show that the empirical specification of the joint discrete and continuous choice that characterizes household portfolio behavior is a switching regressions model with endogenous switching we go on to examine the impact of taxes on portfolio composition using detailed survey data to calculate precisely the marginal tax rate facing each household finally we estimate wealth elasticities of demand for a range of assets and liabilities

the effect of outward investment to china on domestic r d a two hurdle model with endogenous odi outward direct investment odi and domestic r d are interrelated but empirical evidence is affected by the nature of a firm s data which are heavily censored firm data contain a firm s yes no decision to invest in china yes no decision of r d and the decision of r d intensity we thus adopt a two hurdle model and allow the china investment decision to be endogenous in an r d model in order to examine the effect of odi in china on domestic r d investment in taiwan s electronics industry in the model a two equation simultaneous subsystem is formed in which three regression equations are specified a decision of r d intensity and a yes no decision of location to conduct r d together with a yes no decision to invest in china our results indicate that china investment and r d intensity are positively related such that odi in china helps to raise significantly a firm s r d intensity as compared to the estimate if the endogeneity of china investment and the nature of data were not properly accounted

assessing the consumers willingness to adopt a prepayment metering system in nigeria abstract despite the rising popularity in the adoption and usage of prepayment meters little is still known about the drivers of its adoption we examine the willingness to adopt prepayment metering ppm for a sample of nigerian households that were not prepayment users double hurdle models were estimated to account for households decisions concerning billing system switching behaviour and households willingness to pay wtp the estimated results revealed that decisions to adopt a prepayment meter are significantly affected by current electricity spending current billing method and the split incentive problem whereas current electricity spending significantly increased the tendency to adopt ppm the split incentive problem reduced the probability of adoption although unmetered consumers were more likely to express a willingness to adopt a ppm system than post paid customers they did not intend to pay a significantly higher amount to obtain the prepayment service income did not play a significant role in decision making concerning ppm adoption and the corresponding wtp amount these results cast doubt on the validity of the widely held belief that low income may be responsible for ppm adoption reflecting the widespread usage of ppm by low income households

when and why do landlords retain property investments this paper examines factors influencing australian landlords decisions to retain their rental investments a variety of statistical techniques are applied to uncover the factors precipitating the exit of landlords from rental housing markets it is found that middle aged investors are more attached to rental investments than younger investors however once retired there is a sharp increase in the likelihood of exit from rental investments the estimates also confirm the importance of financial variables leveraged loss making investors with higher gross rental yields are more inclined to terminate leases it is concluded that fiscal and monetary policy settings play an important role in shaping rental housing investment decisions since interest rate and tax parameters are important in determining investors negative gearing status these will in turn drive changes in housing supply and affordability in rental markets

objective vs subjective fuel poverty and self assessed health abstract identification of fuel poverty and its impact on individuals is a growing social issue classifying households using subjective measures of fuel poverty yields different results than when objective measures are used moreover there are assessment related difficulties in establishing the effects on health and wellbeing which hinders policy design to tackle this problem in this paper we propose a latent class ordered probit model to control for subjectivity when analysing the influence of fuel poverty on self reported health this methodology is applied to a sample of 25 000 individuals in 11 000 households for the 2011 2014 period in spain where 5 1 million people 11 of the population could not afford to heat their homes to an adequate temperature in 2014 the results show that poor housing conditions low income material deprivation and fuel poverty have a negative impact on health we also find that the effect of objective fuel poverty and other poverty related factors on health are stronger when we control for unobserved heterogeneity among individuals since objective measures alone may not fully capture the adverse effect of fuel poverty on health we advocate policy approaches that combine both objective and subjective measures and its application by policymakers

patent protection innovation and technology transfer in a schumpeterian economy abstract this paper analyzes the cross country effects of intellectual property rights ipr protection on the relative wage innovation and technology transfer in a north south quality ladder model with innovative northern r d and adaptive southern r d the degree of ipr protection in two countries differs in terms of patent breadth which determines the markups of northern firms and their southern affiliates respectively in this model stronger ipr protection in the south leads to a permanent decrease in the north south wage gap a temporary increase in the northern innovation rate and a permanent increase in technology transfer by contrast stronger ipr protection in the north leads to a permanent increase in the north south wage gap ambiguous effects on the northern innovation rate and a permanent decrease in technology transfer finally we perform a quantitative analysis by calibrating the model to the us china data and the numerical results support these policy implications in addition to a welfare implication such that strengthening patent protection in one country leads to sizable welfare improvements in both countries

empowered examining self disconnection in a postal survey of electricity prepayment meter consumers in new zealand abstract prepayment metering is an electricity payment method often used by low income consumers fuel poverty is an important public health problem in new zealand and is likely to be a particular problem for those using prepayment metering this paper details a nationwide postal survey of consumers undertaken with the support of three major electricity retailers which investigated the advantages and disadvantages of using prepayment metering from a consumer perspective the study surveyed a total pool of 359 randomly selected consumers across the three companies a response rate of 48 the study found that while almost all respondents felt the benefits of using prepayment outweighed the risks of running out of credit or self disconnection 53 of respondents experienced self disconnection in the past year of concern over a third of respondents experiencing self disconnection were without electricity for more than 12 h the frequency of self disconnection was also high with 17 of those disconnecting reporting six or more events in the past year government intervention could reduce the risks and disadvantages involved with using prepayment metering which could then support initiatives aimed at reducing fuel poverty

estimating the consumption and investment demands for housing and their effect on housing tenure status theoretical work suggests that families live in owner occupied housing if their investment demand for housing exceeds their consumption demand for housing using household data from the 1983 survey of consumer finances the authors test this theory by estimating an ordered probit model of whether families rent without owning property rent while owning property other than their home own their home without owning other properties or own their home in addition to other properties for owner occupiers who own additional property both the investment and consumption demands are directly observed enabling the authors to separately identify these functions copyright 1994 by mit press

what makes a landlord ownership of real estate by us households households supply about three quarters of us rental housing the paper examines the real estate investment decision and the proportion of wealth invested in real estate hypotheses drawn primarily from the real estate finance literature about the role of wealth expected inflation human capital income tax rates race health risk aversion and inheritance are tested against data from the health and retirement study wealth has a powerful non linear effect on ownership of real estate but ownership is negatively associated with human capital marginal tax rates race and property gifts affect real estate investment poor health risk aversion and expected inflation do not seem to

conceptualising housing costs the hidden face of energy poverty in poland abstract the study proposes an approach to assess a hidden aspect of energy poverty ep in poland we consider households energy under consumption driven by low energy efficiency and budgetary constraints a household is exposed to hidden energy poverty hep if it s total disposable income after deducting the expected housing cost falls under the established threshold to approximate the expected total housing expenditures the data from the eu silc dataset on dwellings parameters households attributes and regional characteristics of poland is used the results show that in 2017 the scale of exposure to hep in poland was 23 7 per cent and this phenomenon is to some extent linked to income poverty there is a clear distinction between subjective ep indicators and exposure to hep two different profiles of exposed to hep households in poland are constructed the first group lives in detached houses and is composed of households with dependent children the second group consists of elderly people inhabiting blocks of flats both groups should be targeted by separate policies

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

spatializing energy justice this paper introduces the concept of spatial justice and inequality to understandings of energy poverty and vulnerability by applying an explicitly spatial lens to conceptualize energy poverty as a form of injustice it contributes to debates in the domain of energy justice where previous examinations of energy deprivation through a justice framing have focused on inequalities between social groups and often marginalized questions of spatial difference we start from the premise that geographic disparities in the risk and incidence of domestic energy deprivation are a key component of energy justice an extensive literature review has allowed us to highlight the spatial and temporal variation of cross sectoral and entire energy chain injustices that lead to elevated energy poverty risks these processes contribute to the rise of energy injustices via four mechanisms which we term landscapes of material deprivation geographic underpinnings of energy affordability vicious cycles of vulnerability and spaces of misrecognition operating at a multiplicity of scales while lending some support to area based approaches towards energy poverty alleviation our findings also suggest that such policies alone may marginalize the underlying structural dynamics that re produce spatial inequalities therefore achieving energy justice necessitates broader interventions in the fundamental driving forces of spatial inequality

the interdependence between fdi and r d an application of an endogenous switching model to taiwan s electronics industry foreign direct investment fdi and research development r d are mutually dependent and should be treated as endogenous variables in empirical studies an endogenous switching regression model is used to examine the mutual effect of fdi and r d in taiwan s electronics industry the empirical results show that fdi and r d are positively related and do reinforce each other unbiased coefficients are obtained as they are compared to those estimates if fdi and r d are treated as exogenous variables the results have a strong public policy implication for taiwan s foreign direct investment and can be further used to estimate the difference in r d expenditures between fdi and non fdi firms

multinational firms technology and location this thesis consists of four essays its main theme is the location of production in multinational firms subsidizing away exports a note on strategic trade policy investigates how strategic

how do different drivers of r d investment in foreign locations affect domestic firm performance an analysis based on swiss panel micro data the aim of this article is to investigate the differences between specific motives of rd 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 copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

multinationals multi plant economies and the gains from trade a general equilibrium model of a multinational enterprise based on economies of multi plant operation is developed these economies are modelled as arising from the existence of a joint input whose productivity in each production facility is independent of the number of facilities maintained by a firm the multinational thus offers the world increased technical efficiency by eliminating the duplication of the joint input that would occur with independent national firms since this technical efficiency may come at the expense of increased market power the full determinants of home country host country and world welfare are considered

making the connection the relationship between fuel poverty electricity disconnection and prepayment metering abstract fuel poverty or inability to afford adequate heating for a reasonable outlay of expenditure is a significant and under researched problem in new zealand the connection between fuel poverty and electricity disconnection or self disconnection is analysed for four cities using prepayment metering to pay for electricity a price comparison analysis on a government sponsored website showed that prepayment metering was more expensive than other payment options this website analysis was supplemented by qualitative data from older people with chronic respiratory disease expressing their views about electricity disconnection and prepayment metering we show that prepayment metering for electricity is more expensive than other payment methods in new zealand and that older people s insights provide valuable context to these issues under the present payment schedule the use of prepayment metering to pay for electricity is not a suitable policy instrument to address fuel poverty which remains problematic the deregulated electricity market continues to lead to increases in the real price of residential electricity and in the number of people in fuel poverty we offer policy suggestions for reducing fuel poverty in new zealand

transnational firms and the changing organisation of innovative activities it is suggested that a transition is taking place towards new modes of organising transnational corporations innovative activities first different units of multinational firms including foreign based subsidiaries are increasingly involved in the generation use and transmission of knowledge secondly multinationals are developing external networks of relationships with local counterparts through which foreign affiliates gain access to external knowledge sources and application abilities as a result of this evolutionary process multinationals organisation is subject to both centripetal and centrifugal forces considerable efforts are then necessary to innovate coordination procedures and mechanisms in order to enhance the generation circulation and use of knowledge a number of empirical works are reviewed providing some evidence of the evolutionary process discussed in the paper 1 transnational companies as networks of innovators economists have long viewed innovation as being primarily generated by firms in their home countries classic contributions in the economics of multinational corporations have consolidated this view referring mainly to the us based multinationals vernon 1966 kindleberger 1969 and stopford and wells 1972 theorised a quasi colonial relationship between the parent company and foreign subsidiaries wherein the latter are in charge of replicating the former s activities abroad with strategic decisions including r d and innovation strategies being rigidly centralised particularly vernon emphasised that coordinating international innovative activities would be too costly owing to the difficulties of collecting and controlling relevant information across national borders host countries and foreign subsidiaries would then play a role almost exclusively in the adoption and diffusion of centrally created technology this view was supported mainly by us economists and based on us evidence from the early post world war ii period but it was very influential for the development of studies on the economics of transnational companies tncs and the internationalisation of

inter firm reverse technology transfer the home country effect of r d internationalization one consequence of the internationalization of rd these results are robust to the exclusion of examiner citations we find that this technology transfer process is explained by the degree of home country embeddedness of the multinational firm the us subsidiaries engagement in asset augmenting activities and the presence of a technology gap between the united states and the home country these results point to an alternative understanding of foreign direct r d investment and its implications for the home country s technological activity and general competitive performance copyright 2009 the author 2009 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

coping with low incomes and cold homes abstract this paper presents findings from a study of low income households in great britain which explored households strategies for coping both with limited financial resources in the winter months when demand for domestic energy increases and in some cases with cold homes the study combined a national survey of 699 households with an income below 60 per cent of national median income with in depth interviews with a subsample of 50 households the primary strategy adopted by low income households to cope with financial constraint was to reduce spending including spending on essentials such as food and fuel and thereby keep up with core financial commitments while spending on food was usually reduced by cutting the range and quality of food purchased spending on energy was usually reduced by cutting consumption sixty three per cent of low income households had cut their energy consumption in the previous winter and 47 per cent had experienced cold homes improvements to the thermal performance of homes reduced but did not eliminate the risk of going cold as any heating cost could be a burden to households on the lowest incomes householders attitudes were central to their coping strategies with most expressing a determination to get by come what may

addressing self disconnection among prepayment energy consumers a behavioural approach abstract this paper explores links between self control in decision making and self disconnection by households using energy prepayment meters self disconnection happens when households exhaust all available credit in their meter and are left without a supply of energy because they have been unable to top up this has serious consequences for the well being of households and also increases firms costs we explore behavioural characteristics associated with self disconnection and present saving plans to help households minimise self disconnection we show that in our sample stated self disconnection is positively associated with lower levels of goal achievement we also show that households which have already experienced self disconnection are more likely to accept an energy savings plan it is relevant and promising that these households tend to select saving plans most likely to minimise their likelihood of self disconnection our findings give some useful insights for energy policy making both for policy makers interested in alleviating energy poverty and for energy utilities keen to limit self disconnection

the returns to foreign r d extant research on research and development r d internationalization has not examined how effective foreign r d investments are in generating positive returns for the investing firms in particular in comparison and conjunction with the effects of domestic r d investments we examine the effectiveness of international knowledge sourcing through foreign r d in an empirical analysis of the productivity effects of foreign and domestic r d investments in a large panel of firms based in the netherlands we argue that foreign and domestic r d will exhibit complementarity in their effects on productivity but that the roles of domestic and foreign r d depend on the relative position of the home country with respect to the global technology frontier and the related relative opportunities for knowledge sourcing abroad we estimate a dynamic panel data model derived from a knowledge stock augmented production function framework allowing for productivity convergence and declining returns to r d we confirm that for firms active in industries in which the home country is behind the global technology frontier foreign r d provides positive returns and has a complementary relationship with domestic r d for industries at the global technology frontier in contrast domestic r d is the primary source of productivity growth

technology transfer within multinational firms and its impact on the productivity of scottish subsidiaries siler p wang c and liu x 2003 technology transfer within multinational firms and its impact on the productivity of scottish subsidiaries reg studies 37 15 25 this paper aims to examine the extent to which the technology generated in us parent firms is transferred to their scottish affiliates in the form of productivity gains using a firm level panel data set the empirical results show that the labour productivity growth of scottish subsidiaries is positively linked to the rd those that already have achieved a relatively high level of productivity and those that compete in industries based on product technology the results have implications

facade insulation retrofitting policy implementation process and its effects on health equity determinants a realist review abstract fuel poverty and cold housing constitute a significant public health problem energy efficiency interventions such as facade retrofitting address the problem from a structural and long term perspective despite evidence of the health benefits of insulation little is known about the political and social contexts that contribute to social inequalities in receiving and experiencing health benefits from these interventions we used a realist review methodology to better understand the mechanisms that explain how and why variations across different social groups appear in receiving energy efficiency facade retrofitting interventions and in their impact on health determinants we considered the four stages of the policy implementation framework public policy approach policy receiving intervention and impact on health determinants we found strong evidence that certain social groups low income renters elderly suffering most from fuel poverty experience more barriers for undertaking a building retrofitting due to factors such as upfront costs presentism thinking split incentives disruption and lack of control and that some public policies on housing energy efficiency may exacerbate these inequalities this can be avoided if such policies specifically aim at tackling fuel poverty or social inequities are completely free to users target the most affected groups and are adapted to their needs

a new measure of italian hidden energy poverty abstract as highlighted by european policymakers and academic research the global economic crisis of 2008 emphasized the energy poverty phenomenon a number of households have had to considerably reduce their energy expenditure but the traditional criteria adopted to calculate energy poverty are not able to measure their number placed in this framework the paper aims to define a new measure of hidden energy poverty suitable to identify which italian households restrain their energy consumption due to their inability to afford energy services a review of the available energy poverty metrics supports the definition of a new indicator that is able to include hidden energy poor consumers considering some key peculiarities such as the poor energy efficiency of buildings the poverty situation low energy consumption and sensitivity to the climate using data from the household budget survey provided by the italian national institute of statistics in 2018 the newly identified indicator supports the assessment of the percentage of italian households in hidden energy poverty and supplies useful insight to policymakers in their effort to support vulnerable consumers

an empirical investigation into students experience of fuel poverty abstract the trend of expansion in higher education in the uk since 1992 has created a massive demand for accommodation for students where the housing stock is one of the oldest and least efficient in europe and the private rented sector is often singled out for containing some of the least energy efficient and in worst condition properties the extent to which students factor in energy efficiency and fuel poverty concerns into their accommodation choices is explored in this paper along with the perception of the phenomena by students from a survey of 286 students it was revealed that while students themselves may not consider themselves to be living in fuel poverty the activities taken in their day to day lives suggest the opposite the impact of the housing stock on student quality of life is investigated as well

intellectual property rights multinational firms and economic growth abstract this paper develops a model of north south trade with multinational firms and economic growth in order to analyze formally the effects of stronger intellectual property rights ipr protection in developing countries in the model northern firms invent new higher quality products multinational firms transfer manufacturing operations to the south and the southern firms imitate products produced by multinational firms it is shown that stronger ipr protection in the south i e the adoption and implementation of the trips agreement leads to a permanent increase in the rate of technology transfer to the south within multinational firms a permanent increase in r d employment by southern affiliates of northern multinationals a permanent decrease in the north south wage gap and a temporary increase in the northern innovation rate

a multidimensional measure of energy poverty in china and its impacts on health an empirical study based on the china family panel studies abstract inability or insufficient access to modern forms of energy is an important issue in development which makes the notion of energy poverty a widely discussed topic a consensus has been reached that energy poverty has serious health education and other socio economic impacts for people in a country however measurements of energy poverty have generally been absent or inaccurate especially for developing countries at the micro level this paper begins with the multidimensional nature of energy poverty and uses household level survey data in china to construct a quantitative measure of energy poverty covering both affordability of and accessibility to a broad range of forms of energy it then builds an econometric model to address empirically how much energy poverty affects health a statistically significant and robust negative impact on health from energy poverty is confirmed our results have important policy relevance in terms of understanding the current status quo of energy poverty in china and its consequences the concept can also be expanded to investigate similar issues in other developing countries

experiencing fuel poverty coping strategies of low income households in vienna austria abstract until the present day research on fuel poverty focussing on the point of view of those concerned is few and far between the present paper aims at filling this gap analysing experiences with and behavioural responses to fuel poverty it examines the day to day energy situation of households which are poor at risk of poverty and or suffering from fuel poverty in a case study conducted in the austrian capital vienna qualitative interviews provide the data for investigating the relevant factors in causing fuel poverty among those bad housing conditions outdated appliances financial problems and provide a basis for discussion about the respective behavioural strategies of the people concerned the results show that the ways of handling this problematic situation vary greatly and that people follow different strategies when it comes to inventing solutions for coping with the restrictions and finding ways of satisfying at least a part of their basic energy needs nonetheless it also clearly surfaces that the scope of action is limited in many cases which in turn only supports the claim that changes in the overall conditions are essential

the drivers of foreign direct investment into research and development an empirical investigation this paper examines the determinants of foreign direct investment fdi in research and development laboratories by 32 multinational enterprises in the pharmaceutical and electronics industries the paper applies a dichotomous set of motives for fdi results from an econometric analysis of 136 laboratory investments show that relative market size and relative strength of a country s science base determine whether fdi in research and development is carried out in order to exploit existing firm specific advantages or in order to build up new firm specific advantages this holds true in similar form for japanese european and u s firms and across the two industries

identifying technology transfer in foreign direct investment influence of industry conditions and investing firm motives firms have different motives for investing abroad most notably to exercise existing capabilities but also to build new capabilities by accessing knowledge located abroad recognizing this heterogeneity helps determine whether foreign investments transfer technology to their host industries using host industries initial level of competition to differentiate when each of these dichotomous motives is more likely i examine change in productivity resulting from inward fdi in us manufacturing industries for 1987 through 1991 while controlling for change in industry competition i find that relatively uncompetitive industries experience productivity growth while competitive industries experience productivity stagnation from fdi this differential outcome is consistent with heterogeneous investment motives