The Internationalisation of Business R & D

The Internationalisation of Business R & D

New Perspectives on the Modern Corporation series

Edited by Bernhard Dachs, Robert Stehrer and Georg Zahradnik

It has become clear that over the past few decades enterprises not only produce and sell abroad but increasingly also develop goods and services outside their home countries; a development now known as the internationalisation of business R & D. This book presents a comprehensive picture of the current state of internationalisation of R & D in the business sector.

Chapter 7: The Relationship between the European Union and United States of America

Barnhard Dachs

Subjects: business and management, international business, economics and finance, economics of innovation, international business, innovation and technology, economics of innovation


The first R & D units abroad were established by multinational firms from the United States of America and the United Kingdom in the 1950s and 1960s (Cantwell 1995). Firms from some smaller European countries (in particular Switzerland and Sweden) started to internationalise R & D relatively early as well, while firms from France, Germany, Italy, or Japan started much later (UNCTAD 2005, p. 122). Since the beginning of the new millennium, new players from South America and from South-East Asia are entering the stage (Asakawa and Som 2008; Baskaran and Muchie 2008; Di Minin and Zhang 2010). R & D internationalisation can thus be described as a process of continuous de-concentration. The aim of this chapter is to study this process of de-concentration from the perspective of the two main host economies, the European Union1 and the United States of America. I look at business R & D of EU firms performed in the United States and compare it with the business R & D expenditure of US firms in the European Union. Due to a lack of EU data2 the chapter will mainly rely on US data provided by the Bureau for Economic Analysis, US Department of Commerce.

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