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CROSS-COUNTRY DIFFERENCES IN INNOVATION BEHAVIOR OF GERMAN MNEs – DOES LOCATION MATTER?

Auteur : Kampik Franziska, Dachs Bernhard
Date de publication : 26/02/2010
Type : Actes de congrès / Séminaire / Atelier
Thème : Recherche et développement
Couverture : Allemagne

Résumé/Sommaire :

This paper analyzes cross-country differences in the innovation behavior of subsidiaries of German multinational enterprises. We find considerable differences in innovation input intensity as well as in innovation output intensity between German subsidiaries located in various European countries.

Multivariate analysis reveals that these differences are mainly related to firm characteristics, in particular to firm size, intramural R&D activity, public funding and international market orientation. From our analysis, we see a significant relationship between innovation performance and the host country only for innovation output: the share of products new to the firm on turnover is highest in the country group with the lowest income and R&D intensity levels.

From a policy perspective, our results imply that policy should focus on improving the innovative capabilities of foreign-owned firms, rather than offer benefits to attract foreign-owned firms.

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