Bericht
Effects of Foreign Ownership on Innovation Activities - Empirical Evidence for 12 European Countries
In the present study we investigate the relationship between foreign ownership and innovation activities using the firm-level data of the third Community Innovation Survey (CIS) covering 12 European countries. Probit estimates based on 28,000 firms observations show that foreign owned firms are more innovative than domestic firms, particularly in the New EU Member States. However, results from the Blinder Oaxaca decomposition of the differences in the percentage of innovating firms between foreign owned and domestic firms reveals that the differences are mainly due to the different firm characteristics rather than the differences in coefficients. In particular, the dominance of foreign owned firms in the largest firm size group is the main factor contributing to the gap in the percentage of innovators between foreign owned firms and domestic firms. Furthermore, using the fractional logit model, we find that in the New EU Member States, foreign ownership has a positive and significant impact on the share of market novelties as well as on the share of new products in turnover. In this case, the results from the Blinder Oaxaca decomposition analysis indicate that the ownership difference in the share of innovative sales is not due to the differences in the observed firms' characteristics.
- Language
-
Englisch
- Bibliographic citation
-
Series: FIW-Research Reports ; No. 020
- Classification
-
Wirtschaft
Multinational Firms; International Business
Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
- Subject
-
Foreign Direct Investment
foreign ownership
multinational firms
product and process innovations
- Event
-
Geistige Schöpfung
- (who)
-
Falk, Martin
- Event
-
Veröffentlichung
- (who)
-
FIW - Research Centre International Economics
- (where)
-
Vienna
- (when)
-
2008
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Bericht
Associated
- Falk, Martin
- FIW - Research Centre International Economics
Time of origin
- 2008
Other Objects (12)
Regulation of economic activities in foreign countries
Foreign ownership and wages: Evidence from five African countries
Corruption, Networking and Foreign Ownership: Recent Evidence from CEE Countries
Strategic Trade Policy and Welfare: The Empirical Consequences of Foreign Ownership
Organization of Multinational Activities and Ownership Structure
Organization of Multinational Activities and Ownership Structure
Empirical Essays on Common Ownership
The brown network : the activities of the Nazis in foreign countries
Outsourcing, foreign ownership, exporting and productivity: An empirical investigation with plant level data
Outsourcing, foreign ownership, exporting and productivity : An empirical investigation with plant level data
Asset ownership and foreign-market entry
Asset Ownership and Foreign-Market Entry
Regulation of economic activities in foreign countries
Foreign ownership and wages: Evidence from five African countries
Corruption, Networking and Foreign Ownership: Recent Evidence from CEE Countries
Strategic Trade Policy and Welfare: The Empirical Consequences of Foreign Ownership
Organization of Multinational Activities and Ownership Structure
Organization of Multinational Activities and Ownership Structure
Empirical Essays on Common Ownership
The brown network : the activities of the Nazis in foreign countries
Outsourcing, foreign ownership, exporting and productivity: An empirical investigation with plant level data
Outsourcing, foreign ownership, exporting and productivity : An empirical investigation with plant level data
Asset ownership and foreign-market entry
Asset Ownership and Foreign-Market Entry
Regulation of economic activities in foreign countries
Foreign ownership and wages: Evidence from five African countries
Corruption, Networking and Foreign Ownership: Recent Evidence from CEE Countries
Strategic Trade Policy and Welfare: The Empirical Consequences of Foreign Ownership
Organization of Multinational Activities and Ownership Structure
Organization of Multinational Activities and Ownership Structure
Empirical Essays on Common Ownership
The brown network : the activities of the Nazis in foreign countries
Outsourcing, foreign ownership, exporting and productivity: An empirical investigation with plant level data
Outsourcing, foreign ownership, exporting and productivity : An empirical investigation with plant level data
Asset ownership and foreign-market entry