TY - JOUR
T1 - Knowledge spillovers from foreign direct investment in R&D
T2 - Evidence from Japanese firm-level data
AU - Todo, Yasuyuki
N1 - Funding Information:
This research was conducted as part of a project on industry- and firm-level productivity in Japan undertaken at the Research Institute of Economy, Trade and Industry (RIETI). The author would like to thank RIETI for providing the opportunity of conducting this research and the Ministry of Economy, Trade and Industry for providing valuable datasets. The author is also grateful to Kyoji Fukao, Kozo Kiyota, Tsutomu Miyagawa and an anonymous referee for helpful discussion and comments and Young Gak Kim and Hyeog Ug Kwon for their help in constructing the dataset. Financial support from the New Energy and Industrial Technology Development Organization is gratefully acknowledged. The opinions expressed and arguments employed in this paper are the sole responsibility of the author and do not necessarily reflect those of RIETI.
Copyright:
Copyright 2006 Elsevier B.V., All rights reserved.
PY - 2006/12
Y1 - 2006/12
N2 - This study uses firm-level panel data from the Japanese manufacturing industries and examines whether foreign direct investment generates intra-industry knowledge spillovers to domestic firms. The analysis found positive effects of R&D stocks of foreign firms on the productivity of domestic firms, while effects of capital stocks of foreign firms were absent, suggesting that knowledge of foreign firms spills over through their R&D activities, but not through their production activities. In addition, we found that the extent of spillovers from R&D stock of foreign firms is substantially larger than spillovers from R&D stock of domestic firms.
AB - This study uses firm-level panel data from the Japanese manufacturing industries and examines whether foreign direct investment generates intra-industry knowledge spillovers to domestic firms. The analysis found positive effects of R&D stocks of foreign firms on the productivity of domestic firms, while effects of capital stocks of foreign firms were absent, suggesting that knowledge of foreign firms spills over through their R&D activities, but not through their production activities. In addition, we found that the extent of spillovers from R&D stock of foreign firms is substantially larger than spillovers from R&D stock of domestic firms.
KW - Foreign direct investment
KW - Knowledge spillovers
KW - R&D activities
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U2 - 10.1016/j.asieco.2006.09.002
DO - 10.1016/j.asieco.2006.09.002
M3 - Article
AN - SCOPUS:33751234512
SN - 1049-0078
VL - 17
SP - 996
EP - 1013
JO - Journal of Asian Economics
JF - Journal of Asian Economics
IS - 6
ER -
