Multinationals and the internationalization of R&D: New developments in German companies

Abstract

This paper examines the globalization of innovation and the phenomenon of foreign direct investment (FDI) in research and development. To do so, it draws from a survey of foreign-affiliated R&D laboratories in the United States. While the literature on foreign direct investment has emphasized the role of markets in driving off-shore investments, the main conclusion of this research is that the globalization of innovation is driven in large measure by technology factors. Of particular importance is the objective of firms to secure access to scientific and technical human capital.