The impact of home and host country institutional development on multinationals’ R&D intensity
Metadata
Show full item recordEditorial
SAGE
Materia
R&D intensity Innovation Institutional development Home country Host countries Internationalization
Date
2022-02-02Referencia bibliográfica
Ellimäki, P., Hurtado-Torres, N. E., & Cordón-Pozo, E. (2022). The impact of home and host country institutional development on multinationals’ R&D intensity. BRQ Business Research Quarterly. [https://doi.org/10.1177/23409444221076495]
Sponsorship
Spanish Government ECO2016-75909-P ECO2017-88222-P PID2019-106725GB-I00/SRAAbstract
This empirical article examines how the institutional development of the home country and host countries in which
multinational enterprises (MNEs) are embedded can drive MNEs’ research and development (R&D) intensity. In doing
so, this study analyzes 967 firm-year observations of 234 pharmaceutical firms from 30 developed and less developed
countries in the period from 2010 to 2017. We find empirical support for internationalization toward developed
countries as a driver of R&D intensity at the firm level. Furthermore, we find that this positive effect is stronger for
MNEs from less institutionally developed home countries. The results can help managers, researchers, and policymakers
to better understand the innovation process in R&D-intensive industries.