Discussion Paper

No. 2015-39 | June 01, 2015
Choice of Foreign R&D Entry Mode and Impact on Firm Performance: A Firm-level Analysis for Switzerland and Austria

Abstract

The study seeks to identify the determinants of a firm’s foreign entry mode choice and the impact of mode selection on firm performance for the specific case of R&D a topic so far not investigated in entry mode research. Separate estimates of a Heckman selection model for Austria and Switzerland, based on comparable firm-level data and variable specification, show for both countries that the OLI model is well-suited to explain not only the propensity to investing abroad in R&D but also the respective choice between equity-based and non-equity governance modes. Moreover, it turns out, but only for Swiss companies, that foreign R&D raises (domestic) firm performance with a larger impact in case of equity-based governance. The differences between the two countries primarily reflect the much higher degree of R&D internationalisation of Switzerland.

JEL Classification:

F23, F61, L24, O32

Assessment

  • Downloads: 1159

Links

Cite As

Heinz Hollenstein and Martin Berger (2015). Choice of Foreign R&D Entry Mode and Impact on Firm Performance: A Firm-level Analysis for Switzerland and Austria. Economics Discussion Papers, No 2015-39, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2015-39


Comments and Questions


Anonymous - Referee Report 1
June 22, 2015 - 08:44

see attached file


Heinz Hollenstein and Martin Berger - Response to Referee Report 1
June 26, 2015 - 10:11

see attached file


Anonymous - Referee Report 2
July 09, 2015 - 08:14

see attached file


Heinz Hollenstein und Martin Berger - Response to Referee Report 2
July 15, 2015 - 09:13

see attached file