The impact of foreign R&D activities on the MNC's performance at home: evidence from the case of Swiss Manufacturing firms

Ben Hamida, L. and Piscitello, L. (2013) The impact of foreign R&D activities on the MNC's performance at home: evidence from the case of Swiss Manufacturing firms. Revue d’Economie Industrielle, 143. pp. 11-33. doi: 10.4000/rei.5613

Abstract/Summary

This paper examines the impact of the MNCs’ internationalisation of R&D activities on their performances/productivity at home. Specifically, using detailed firm-level data for Swiss manufacturing firms, we find that foreign R&D activity of Swiss MNCs is a valuable source of knowledge which improves their productivity performance at home, but only when firms invest in knowledge-seeking activities. Conversely, R&D activities conducted abroad with knowledge-exploiting purposes seem to weaken the MNC’s productivity at home.