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Begin New Search Topic International Relations Author Leo A. Grünfeld

1. International R Spillovers and the Effect of Absorptive Capacity

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
We study the productivity effects of R spillovers through imports, foreign direct investment and domestic intermediates, using a highly disaggregated data set for Norwegian business sectors. As opposed to the large body of similar studies, we explicitly analyse the importance of absorptive capacity effects, claiming that the positive contribution from R spillovers is an increasing function of the R activities of the economic units that receive the spillovers. We find strong support for the existence of R spillovers through imports and domestic intermediates, but no sign of such spillovers through foreign ownership. Surprisingly, we identify absorptive capacity effects relating to spillovers from imports, but no such effects with respect to domestic intermediates. One possible explanation is that the cost of learning from international R sources is larger than from domestic R sources, implying that own R investments can counteract the negative effect of geographical and cultural distance on R spillovers.
Topic:
International Relations, Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Norway

2. Multinationals Searching for R Spillovers

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper surveys the literature on R and technology spillovers as a motive for FDI. During the last years, a growing body of theoretical studies has generated formal arguments supporting the economic rationale for such behaviour. Yet, theoretical contributions are clustered within a few schools and a wider approach is necessary in order to understand the mechanisms that relate R spillovers to FDI. The empirical literature is more numerous, but provides ambiguous conclusions with respect to the strength of this motive. Micro studies provide less supportive results as compared to studies based on more aggregate data. Studies based on patent information are generally supportive to the existence of this motive.
Topic:
International Relations, Economics, International Trade and Finance, and Science and Technology

3. International R Spillovers and the Absorptive Capacity of Multinationals

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper studies R spillovers as a motive for firms to go multinational. The establishment of a foreign subsidiary may increase a firm's ability to learn from foreign R activity since R spillovers between firms are moderated by geographical distance. As opposed to earlier studies on this subject, we also model the concept of absorptive capacity where spillovers are endogenised as a function of the firms'own R investments. We employ a three-stage Cournot duopoly model to identify under what conditions a firm chooses to service a foreign market through exports or localised production (going multinational). With exogenous R investments, the absorptive capacity effect contributes to increase the gains from going multinational when the firm is a technology leader in terms of R If R investments are endogenous, only medium-sized absorptive capacity effects will result in firms going multinational. Also, higher spillover rates do not necessarily drive down R and profits for the multinational firm. This stands in contrast to models that ignore the aspect of absorptive capacity.
Topic:
International Relations, Economics, International Trade and Finance, and Science and Technology

4. Patterns of Trade and Foreign Direct Investment in Africa—A simple test of the new trade theory with multinationals

Author:
Lars C. Svindal and Leo A. Grünfeld
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In this study, we present an empirical survey of the patterns of trade and FDI in Africa based on a sample of 28 countries and their transactions with the OECD countries. These patterns are used to test whether the predictions of the new trade theory with multinationals as described by Markusen and Venables (1995,1998) fit the development in Africa. The theory states that multinational production will gradually outgrow trade as countries converge in terms of income, yet our econometric study gives only week evidence supporting such a pattern. Alternative explanations are also investigated,and it is shown that trade barriers, geographical distance, income per capita and access to ocean explain much of the variation in trade and FDI in Africa.
Topic:
International Relations, Development, and Economics
Political Geography:
Africa