What determines knowledge sourcing from host locations of overseas R&D operations?: A study of global R&D activities of Japanese multinationals

What determines knowledge sourcing from host locations of overseas R&D operations? We investigate factors that influence the extent to which overseas R&D laboratories source knowledge from host locations. Drawing on both the capabilities perspective and the embeddedness perspective, we have developed a conceptual model and then examined it empirically focusing on overseas R&D labs of Japanese multinationals. Statistical findings from negative binomial regressions show that both technological capabilities of the lab and external embeddedness in the local scientific and engineering communities matter.

Research highlights▶ Traits of overseas R&D labs matter to their knowledge sourcing from host locations. ▶ An inverted-U relationship is found between a lab's technological capability and the level of knowledge sourcing from the host location. ▶ An overseas R&D lab's deep embeddedness in the local scientific and engineering communities is suggested.