Investment strategy for a multinational enterprise : R&D investment and foreign direct investment
Year: 2005
Type: report
Abstract: This paper analyzes how the investment strategies chosen by a multinational enterprise inter-relate each other when it is constrained to budged in investing inward and outward in an oligopolistic market. I assume that if a multinational enterprise increases in inward cost-reducing R&D investment, then the residual resource necessary for outward foreign direct investment will be reduced. It is shown that whether firms' R&D investments are strategic substitutes or strategic complements are endogenously determined depending on how much a multinational invests in R&D. The way how the initial technology gap between a multinational and firms of the host country is affected by the host country's trade policy is also considered.
Author: Serizawa, Nobuko
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7146372507