This thesis analyzes different aspects of research and development (R&D) and technology transfer by Swedish multinational enterprises (MNEs). Following an introductory chapter are four separate empirical studies.
Chapter II examines to what extent Swedish MNEs transfer technology to their foreign affiliates. The results suggest that R&D-generated knowledge is transferred from parent companies to the affiliates. Technology transfer has a larger impact on newly established affiliates, which may imply that foreign affiliates become more self-reliant over time. R&D undertaken in the affiliates seems to facilitate technology transfer in the case of process industries. Moreover, knowledge appears to be "embodied" in intermediary-good deliveries from the parent, especially for affiliates located in developing countries.
In chapter III the utilization of R&D results in the home and foreign plants of the MNEs is analyzed. Four-fifths of the total gain in value-added attributed to home R&D was realized in the MNEs' home plants while the remaining fifth benefitted the foreign plants. Considering that around one-third of the MNEs' total output is attributed to their foreign operations, the gain of the foreign plants must be regarded as substantial. There is also some indication that the foreign gain has increased over time. Knowledge generated in foreign affiliates does not seem to be used as an input in home plants.
The simultaneous relationship between R&D and foreign sales in Swedish MNEs is analyzed in chapter IV. Positive effects were found in both directions, supporting the hypothesis of a two-way reinforcing relationship. The only previous study addressing this issue used data for U. S. firms, but did not find evidence of a simultaneous relationship. This may suggest that the link between R&D and foreign sales is stronger for MNEs from small countries, since these firms have limited growth opportunities at home.
Finally, chapter V investigates determinants of overseas R&D. The empirical evidence first suggests that the location of overseas R&D is motivated to a large extent by the need to adapt products and processes to conditions in foreign markets. When controlling for factors related to adaptation, we also find that the Swedish firms locate a higher share of their R&D expenditures to host countries that are relatively specialized technologically in their industry. This may suggest that one additional motive to locating R&D abroad is to gain access to knowledge in "centers of excellence" and to benefit from localized spillovers.
