ITO Banri
   Department   Aoyama Gakuin University  Department of Economics, College of Economics
   Position   Professor
Language English
Publication Date 2008
Type Academic Journal
Peer Review Peer reviewed
Title Intra-firmTechnology Transfer and R&D in Foreign Affiliates: Substitutes or Complements? Evidence from Japanese Multinational Firms
Contribution Type Collaboration
Journal Journal of the Japanese and International Economies
Journal TypeAnother Country
Volume, Issue, Page pp.310-319
Author and coauthor Rene Belderbos, Banri Ito and Ryuhei Wakasugi
Details R&D in foreign affiliates and technology transferred from their parent firms are important potential drivers of productivity in host countries. In this paper we examine the simultaneous impact of local R&D and intra-firm international technology transfer on productivity growth in foreign affiliates. We estimate a dynamic productivity model on a large sample of Japanese manufacturing affiliates worldwide in 1996-1997 and 1999-2000. We find that both affiliate R&D and intra-firm technology transfer contribute to productivity growth, while technology transfer exhibits decreasing marginal returns. The two sources of technology are complements: use of one source of technology increases the marginal impact of the other.