The globalisation of corporate R&D. Evidence from German environmental technology companies

This paper contributes to the discussion about the globalization of corporate R&D by analyzing R&D strategies of environmental technology companies. Data is generated from a survey among German applicants for environmental technology patents. The survey elucidates motives and functions of foreign R&D as well as factors influencing the strategic choice between domestic and foreign R&D. The results strongly support the validity of the efficiency seeking motive for foreign R&D. Similarly, there is weak evidence for the resource seeking motive when controlling for specific host countries. In contrast, the market seeking motive had no significant influence on the intention to conduct foreign R&D in the future. Company size seems to be positively associated with investment in foreign R&D, whereas R&D intensity is not.