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Here or There? A Survey of Factors in Multinational R&D Location -- Report to the Government-University-Industry Research Roundtable (2006) / Chapter Skim
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Factors in the Selection of R&D Sites
Pages 21-28

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From page 21...
... This exercise was first carried out for sites outside the home country, then it was repeated for sites identified inside the home country, with the exception that factors 10­13 were not considered for home facilities. This was done because of the belief that these factors were less crucial for sites in the home country.
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From page 22...
... 4. In this country it is easy to negotiate ownership of intellectual property from research relationships.
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From page 23...
... and Western European firms are combined. RESULTS FOR SITES OUTSIDE THE HOME COUNTRY: EMERGING ECONOMIES Figure 7 presents the mean agree/disagree and importance responses for respondents identifying a recently established or planned site in an emerging economy.
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From page 24...
... Respondents disagree that it is easy to negotiate ownership of intellectual property from research relationships, and they disagree that the quality of intellectual property protection is good. 1One of the reviewers of this report argued that including the QualR&D question was not necessary, given that companies would be unlikely to admit to choosing a site where highly qualified personnel are not present.
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From page 25...
... OUTSIDE HOME COUNTRY DESTINATIONS: DEVELOPED ECONOMIES Figure 8 shows the results for factors behind the choice of sites outside the home country and in another developed economy. Eighty percent of these sites are either in the United States or in Western Europe.
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From page 26...
... For the remaining factors, two stand out as being particularly important in firm deliberations about developed country sites: protection of intellectual property and quality of R&D personnel. These two are not statistically significantly different from each other, but they are significantly different from all other factors.
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From page 27...
... TaxBreaks=Costs Costs=Spin Ownership= CollabUniv= UnivFac IPProtect=QualR&D SUMMARY OF RESULTS To summarize results on the factors that influence R&D location, the issue is not why firms locate at home or not, but why they locate in a developed economy versus an emerging economy. The results are striking and summarized in Table 3.
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From page 28...
... In particular, recall from Figures 8 and 9 that costs are high in developed sites, but, on average, costs are not considered an important part of the decision for developed economies. The order by which factors are listed in the table reflects the relative order of importance by stage of development.
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Key Terms

  • sites outside
  • statistical tests
  • property protection
  • sites inside
  • developed economies

  • percent level
  • emerging economy
  • country figure
  • site selection
  • outside home

  • emerging economies
  • developed economy
  • statistical test
  • developed sites
  • versus sites

  • oped economy
  • intellectual property
  • statistically significantly
  • developed country
  • growth potential

  • statistically significant
  • country versus
  • oped countries
  • university faculty


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