{"id":153755,"date":"2024-03-21T07:36:31","date_gmt":"2024-03-21T06:36:31","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/153755\/"},"modified":"2024-11-07T03:44:24","modified_gmt":"2024-11-07T02:44:24","slug":"do-foreign-owned-firms-have-a-lower-innovation-intensity-than-domestic-firms","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/153755\/","title":{"rendered":"Do Foreign-Owned Firms Have a Lower Innovation Intensity Than Domestic Firms?"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-153755","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"This paper addresses the question of whether foreign ownership matters regarding innovation intensity. It is well documented that foreign firms display lower innovation and R&amp;D intensity than local firms do. However, (foreign) investors bear not only innovation performances in mind when making up their investment decisions. Unless factors such as firm size, labour productivity, skill and export intensity, sectoral affiliation and geographical area of operation are not properly controlled for, one is running the risk of comparing apples and oranges. To account for the selectivity bias we employ matching estimators when comparing the innovation intensity between domestic and foreign-owned firms. The observed gaps in innovation intensities do not only survive this matching test, but turn out higher as compared to the results that would have been derived from conventional regression analyses.","onlinedate":"2006-07-05 02:00:00","lang":"English","publication_series":"","publication_date":"20060701","publication_date_year":"","publication_date_full":false,"publication_num_pages":"21","keywords":"[\"Foreign ownership\",\"Multinational firms\",\"innovation expenditures.\",\"propensity score matching\"]","jelcodes":"[]","related_publications":"[]","pdf":324820,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"275","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":null,"types":[44410],"research_groups":[3491],"collaboration":"","persons":[4397,4137],"persons_data":"[{\"personId\":4397,\"personName\":\"Martin Falk\",\"organisationNames\":[]},{\"personId\":4137,\"personName\":\"Rahel Falk\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Falk, M.<\\\/span><span>, &amp; Falk, R.<\\\/span> (2006). <span>Do Foreign-Owned Firms Have a Lower Innovation Intensity Than Domestic Firms?<\\\/span> <span><em>WIFO Working Papers<\\\/em><\\\/span>, (275). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/26675\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/26675<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Falk M<\\\/span><span>, Falk R<\\\/span>. <span class=\\\"title\\\"><span>Do Foreign-Owned Firms Have a Lower Innovation Intensity Than Domestic Firms?<\\\/span><\\\/span> <span>WIFO Working Papers<\\\/span>. 2006 Jul;(275).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{dc2ed0604a8b42a2aa8eb238cc2abf22,<\\\/div><div>  title    = \\\"Do Foreign-Owned Firms Have a Lower Innovation Intensity Than Domestic Firms?\\\",<\\\/div><div>  abstract = \\\"This paper addresses the question of whether foreign ownership matters regarding innovation intensity. It is well documented that foreign firms display lower innovation and R\\\\&amp;D intensity than local firms do. However, (foreign) investors bear not only innovation performances in mind when making up their investment decisions. Unless factors such as firm size, labour productivity, skill and export intensity, sectoral affiliation and geographical area of operation are not properly controlled for, one is running the risk of comparing apples and oranges. To account for the selectivity bias we employ matching estimators when comparing the innovation intensity between domestic and foreign-owned firms. The observed gaps in innovation intensities do not only survive this matching test, but turn out higher as compared to the results that would have been derived from conventional regression analyses.\\\",<\\\/div><div>  keywords = \\\"Foreign ownership, Multinational firms, innovation expenditures., propensity score matching, Foreign ownership, Multinational firms, innovation expenditures., propensity score matching\\\",<\\\/div><div>  author   = \\\"Martin Falk and Rahel Falk\\\",<\\\/div><div>  year     = \\\"2006\\\",<\\\/div><div>  month    = jul,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Do Foreign-Owned Firms Have a Lower Innovation Intensity Than Domestic Firms?<\\\/p><p>AU  - Falk, Martin<\\\/p><p>AU  - Falk, Rahel<\\\/p><p>PY  - 2006\\\/7<\\\/p><p>Y1  - 2006\\\/7<\\\/p><p>N2  - This paper addresses the question of whether foreign ownership matters regarding innovation intensity. It is well documented that foreign firms display lower innovation and R&amp;D intensity than local firms do. However, (foreign) investors bear not only innovation performances in mind when making up their investment decisions. Unless factors such as firm size, labour productivity, skill and export intensity, sectoral affiliation and geographical area of operation are not properly controlled for, one is running the risk of comparing apples and oranges. To account for the selectivity bias we employ matching estimators when comparing the innovation intensity between domestic and foreign-owned firms. The observed gaps in innovation intensities do not only survive this matching test, but turn out higher as compared to the results that would have been derived from conventional regression analyses.<\\\/p><p>AB  - This paper addresses the question of whether foreign ownership matters regarding innovation intensity. It is well documented that foreign firms display lower innovation and R&amp;D intensity than local firms do. However, (foreign) investors bear not only innovation performances in mind when making up their investment decisions. Unless factors such as firm size, labour productivity, skill and export intensity, sectoral affiliation and geographical area of operation are not properly controlled for, one is running the risk of comparing apples and oranges. To account for the selectivity bias we employ matching estimators when comparing the innovation intensity between domestic and foreign-owned firms. The observed gaps in innovation intensities do not only survive this matching test, but turn out higher as compared to the results that would have been derived from conventional regression analyses.<\\\/p><p>KW  - Foreign ownership<\\\/p><p>KW  - Multinational firms<\\\/p><p>KW  - innovation expenditures.<\\\/p><p>KW  - propensity score matching<\\\/p><p>KW  - Foreign ownership<\\\/p><p>KW  - Multinational firms<\\\/p><p>KW  - innovation expenditures.<\\\/p><p>KW  - propensity score matching<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Working Papers<\\\/p><p>JF  - WIFO Working Papers<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Do Foreign-Owned Firms Have a Lower Innovation Intensity Than Domestic Firms? 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