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- W2121566170 abstract "Abstract Do R&D spillovers have an impact on whether firms choose to go multinational or not? We present a three‐stage Cournot duopoly model, which identifies under what conditions firms choose to service a foreign market through exports or localized production. The establishment of a foreign subsidiary improves the ability to learn from foreign R&D since spillovers are strongly moderated by geographical distance. We explicitly model the concept of absorptive capacity, where gains from spillovers are determined by own R&D investments. With exogenous R&D investments, the absorptive capacity effect contributes to increase the gains from going multinational when the firm is R&D‐intensive. However, if R&D investments are endogenous, only medium‐sized absorptive capacity effects will result in firms going multinational. Furthermore, higher spillover rates do not necessarily drive down R&D and profits for the multinational firm. This stands in contrast to models that ignore absorptive capacity effects." @default.
- W2121566170 created "2016-06-24" @default.
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- W2121566170 date "2006-10-26" @default.
- W2121566170 modified "2023-10-16" @default.
- W2121566170 title "Multinational Production, Absorptive Capacity, and Endogenous R&D Spillovers" @default.
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- W2121566170 doi "https://doi.org/10.1111/j.1467-9396.2006.00622.x" @default.
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