Factors determining the home region and inter-triad R&D location choice

Mehmet Demirbag, Keith Glaister

    Research output: Contribution to conferencePaper

    Abstract

    This paper looks at factors determining the home region and inter-triad R&D This paper examines the impact of home and host country, industry and firm level variables on R&D project location choice between MNEs’ home region and other triad regions. The study is based on a panel of data from 954 MNEs. It employs the random effects probit method of estimation by using 1900 R&D projects offshored by MNEs. We draw on the extended OLI paradigm to develop our hypotheses. At the country level, findings show that the R&D wage difference and knowledge infrastructure difference between home and host countries of R&D projects increases the propensity to offshore R&D projects inter-triad (regions other than the MNE’s own region). At the firm level, the MNE’s previous international R&D experience with a particular technology and previous experience in the host destination are found to increase the propensity to offshore inter-triad. However, the R&D project’s global market orientation increases the propensity to offshore within the MNE’s own triad region

    Conference

    ConferenceAcademy of Management Annual Meeting 2008
    CountryUnited States
    CityAnaheim
    Period8/08/0813/08/08
    Internet address

    Fingerprint

    Wages
    Industry
    Factors
    Triad
    Location choice
    Multinational enterprises
    Propensity

    Keywords

    • determining factors
    • home region
    • inter-riad
    • r&d projects
    • location choice

    Cite this

    Demirbag, M., & Glaister, K. (2008). Factors determining the home region and inter-triad R&D location choice. Paper presented at Academy of Management Annual Meeting 2008, Anaheim, United States.
    Demirbag, Mehmet ; Glaister, Keith. / Factors determining the home region and inter-triad R&D location choice. Paper presented at Academy of Management Annual Meeting 2008, Anaheim, United States.
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    abstract = "This paper looks at factors determining the home region and inter-triad R&D This paper examines the impact of home and host country, industry and firm level variables on R&D project location choice between MNEs’ home region and other triad regions. The study is based on a panel of data from 954 MNEs. It employs the random effects probit method of estimation by using 1900 R&D projects offshored by MNEs. We draw on the extended OLI paradigm to develop our hypotheses. At the country level, findings show that the R&D wage difference and knowledge infrastructure difference between home and host countries of R&D projects increases the propensity to offshore R&D projects inter-triad (regions other than the MNE’s own region). At the firm level, the MNE’s previous international R&D experience with a particular technology and previous experience in the host destination are found to increase the propensity to offshore inter-triad. However, the R&D project’s global market orientation increases the propensity to offshore within the MNE’s own triad region",
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    Demirbag, M & Glaister, K 2008, 'Factors determining the home region and inter-triad R&D location choice' Paper presented at Academy of Management Annual Meeting 2008, Anaheim, United States, 8/08/08 - 13/08/08, .

    Factors determining the home region and inter-triad R&D location choice. / Demirbag, Mehmet; Glaister, Keith.

    2008. Paper presented at Academy of Management Annual Meeting 2008, Anaheim, United States.

    Research output: Contribution to conferencePaper

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    AU - Demirbag, Mehmet

    AU - Glaister, Keith

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    AB - This paper looks at factors determining the home region and inter-triad R&D This paper examines the impact of home and host country, industry and firm level variables on R&D project location choice between MNEs’ home region and other triad regions. The study is based on a panel of data from 954 MNEs. It employs the random effects probit method of estimation by using 1900 R&D projects offshored by MNEs. We draw on the extended OLI paradigm to develop our hypotheses. At the country level, findings show that the R&D wage difference and knowledge infrastructure difference between home and host countries of R&D projects increases the propensity to offshore R&D projects inter-triad (regions other than the MNE’s own region). At the firm level, the MNE’s previous international R&D experience with a particular technology and previous experience in the host destination are found to increase the propensity to offshore inter-triad. However, the R&D project’s global market orientation increases the propensity to offshore within the MNE’s own triad region

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    KW - inter-riad

    KW - r&d projects

    KW - location choice

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    Demirbag M, Glaister K. Factors determining the home region and inter-triad R&D location choice. 2008. Paper presented at Academy of Management Annual Meeting 2008, Anaheim, United States.