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Optimal scale for research and development in foreign environments—an investigation into size and performance of research and development laboratories abroad

Research PolicyPublished 1 June 1998
Walter Kuemmerle
Citations75
SJR quartileQ1
SJR score3.44
SNIP3.20

Abstract

This paper examines the relationship between performance and size of R&D laboratories operated abroad. Based on a theoretical argument, the paper proposes a concave relationship between laboratory size and performance, as well as a linear relationship between firm learning and laboratory performance. Empirical tests with 129 laboratories established by 27 multinational companies in the pharmaceuticals and electronics industries support these conjectures.

Keywords

Economics, Econometrics and FinanceBusiness, Management and Accounting