Foreign acquisitions, domestic multinationals, and R&D
2014 (English)In: Scandinavian Journal of Economics, ISSN 0347-0520, E-ISSN 1467-9442, Vol. 116, no 4, 1091-1115 p.Article in journal (Refereed) Published
Our aim in this paper is to evaluate the causal effect of foreign acquisition on research and development (R&D) intensity in targeted domestic firms. We are able to distinguish domestic multinational enterprises (MNEs) and non-MNEs, which allows us to investigate the fear that the change in ownership of domestic MNEs to foreign MNEs leads to a reduction in R&D activity in the country. Overall, our results give no support to the fears that foreign acquisition of domestic firms leads to a relocation of R&D activity in Swedish MNEs. Rather, in this paper, we find robust evidence that foreign acquisitions lead to increasing R&D intensity in acquired domestic MNEs and non-MNEs.
Place, publisher, year, edition, pages
Wiley-Blackwell, 2014. Vol. 116, no 4, 1091-1115 p.
Foreign acquisitions; multinational firms; R&D; F23; L10
IdentifiersURN: urn:nbn:se:liu:diva-114793DOI: 10.1111/sjoe.12071OAI: oai:DiVA.org:liu-114793DiVA: diva2:792477