Internationalisation of R&D: A review of drivers, impacts and new lines of research

This paper reviews the growing literature on the internationalisation of R&D in the business sector. By internationalisation of R&D, this paper means the fact that firms conduct research and development at locations outside their home countries. The survey focuses on three issues: first, the drivers of the process at the country, the sectoral and the firm level - why firms go abroad with R&D activities. Second, evidence on the effects of the internationalisation of R&D on the host and home countries of multinational firms. So far, there is a consensus in the literature that R&D internationalisation benefits the host countries. Third, the paper discusses some new lines of research on R&D internationalisation related to the role of indirect funding for R&D, R&D internationalisation in services and multinationals from emerging economies.