Internationalization of Swedish R&D: Motives and problems

Sammanfattning: This thesis examines the development of geographical location of research and development (R&D) in Swedish multinational corporations (MNCs), and the motives and problems associated with locating R&D abroad. A questionnaire-based survey is used in an attempt to map the global location of R&D on a country by country basis, and to evaluate the drivers and obstacles to internationalization. The results on the motives for internationalization show that adaptation of products to local markets and the need of establishing R&D units in conjunction with internationalized production units are the most important motivators for locating abroad. Access to skilled manpower and the cost of labour is also considered important. The motives related to external factors such as technology sourcing and spillover effects from proximity to other companies were rated as far less important. The firms report substantially different problems related to internationalization of R&D when locating in a non-OECD country compared to locating within the OECD-area. Problems related to weak intellectual property rights protection and increased coordination costs and cultural differences are considered to be of particular importance when locating in a non-OECD country. Headquarter proximity received very low scores as a determinant of the location of R&D activities. These results largely confirm earlier studies and suggest that even though the prospect of decreasing the cost of human capital has risen in importance as a motivator for R&D location, the traditional market- and production-related motives still are the primary drivers of internationalization.