The impact of international R&D on home-country R&D for Indian multinationals

Extant research on internationalization of research and development (R&D) has not examined what the impact of foreign R&D investments is for the investing corporate parent firms, in particular on domestic R&D investments. The aim of this paper is to examine the effectiveness of international knowledge sourcing through foreign R&D in an empirical analysis of the effects of foreign R&D investments on domestic R&D intensity for a panel of Indian firms. The paper specifically investigates the importance and impact of the role and the location of foreign R&D centres on parent-company R&D by analysing differences between foreign-technology-seeking and foreign-technology-exploiting R&D, and between centres in advanced countries and in developing countries. The analysis finds contrasting results between advanced and developing countries and between technology-exploring and technology-exploiting investments.
1. Introduction This paper focuses on the internationalization of research and development (R&D) by Indian multinational enterprises (MNEs) by analysing foreign R&D greenfield investments of Indian MNEs over the last [...]