A comparative study of location choice for overseas R&D investment of TNCs: An empirical study of the United States and Japan based on panel data

Abstract

Through comparative analysis, this study attempts to uncover the differences and similarities among transnational company (TNC) investments in various host countries. After empirically analyzing the panel data collected from the US and Japanese TNCs' foreign R&D investments, it looks into the influences of the host countries' economies, technologies, and institutional factors on absorbing TNCs' foreign R&D investment from different countries. The host countries' market size and potential are still the main influencing factors in making the choice. The US TNCs focus mainly on host countries' scientific and technological capabilities and potentials, whereas those of Japan are concentrated more on the scientific and technological capabilities and personnel, so as to improve R&D. Moreover, the US TNCs show more attention to host countries' intellectual property protection than do those from Japan.

Citation

Wang, Y., An, S. and Luo, P. (2011), "A comparative study of location choice for overseas R&D investment of TNCs: An empirical study of the United States and Japan based on panel data", Zou, S. and Fu, H. (Ed.) International Marketing (Advances in International Marketing, Vol. 21), Emerald Group Publishing Limited, Leeds, pp. 253-282. https://doi.org/10.1108/S1474-7979(2011)0000021014