Scandinavian Working Papers in Economics
Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
No 87: The Innovative Performance of Foreign-owned Enterprises in Small Open Economies
Bernhard Dachs (), Bernd Ebersberger () and Hans Lööf ()
Additional contact information
Bernhard Dachs: Austrian Research Centers, Vienna, Austria
Bernd Ebersberger: Management Center Innsbruck, Innsbruck, Austria
Hans Lööf: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Abstract: This paper compares the innovative performance of foreign-owned and domestically owned enterprises in five European countries. We look at innovation inputs, outputs, and examine how strong foreign-owned enterprises are embedded in the innovations systems of their host countries. We find that foreign ownership causes no differences in innovation input, but yields a higher innovation output and higher labour productivity. In four of the five countries, affiliates of foreign multinationals show a similar or even a higher propensity to co-operate with domestic partners than domestically owned enterprises
Keywords: Austria; Denmark; Finland; Norway; Sweden; Innovation; Multinational Enterprises; Foreign-owned Enterprises; CIS
21 pages, April 16, 2007
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