Technological Diversity, Scientific Excellence and the Location of Inventive Activities Abroad: the Use of Nanotechnology

Technological Diversity, Scientific Excellence and the Location of Inventive Activities Abroad: the Use of Nanotechnology
Document type
Working Paper
Author(s)
Fernández-Ribas, Andrea Shapira, Philip
Publisher
Manchester Business School
Date of publication
29 March 2010
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

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Our contribution to the expanding literature on the globalization of research and innovation is to investigate the extent to which sector-specific developments in an emerging technology (such as increasing interdisciplinarity and complexity) affect inventive activities developed abroad. We look at how technological diversity and scientific excellence of host countries in the field of nanotechnology affect the development of inventive activities by US multinational companies (MNCs). We identify the most active US-based MNCs in nanotechnology-related patenting and examine location decisions of these companies and their international subsidiaries. Econometric results confirm our hypothesis that technological breadth of host countries positively influence the expected number of inventions developed abroad by US MNCs. S&T capabilities of countries also have a positive impact on the decision to invent abroad, while the influence of market specific factors is less clear.

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