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Medium-Sized Foreign-Owned German Enterprises Heavily Involved in R&D

DIW Weekly Report 22/23 / 2016, S. 263-273

Heike Belitz, Alexander Eickelpasch

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In Germany, the share of private investment in research and development (R&D) by foreign-owned companies from the beginning of the millennium to 2011 remained virtually unchanged at around one-quarter. From 2011 to 2013, this share fell slightly, and for the first time since the mid-1990s also the absolute amount decreased. Growth in domestic firms, however, was so high that there was an increase in the overall R&D of firms in Germany. The decline in investment by foreign companies is likely to reflect strategic decisions in some major enterprises; medium-sized foreign companies have in fact expanded their R&D activities. In the present study, no evidence was found that Germany has become less attractive as a location for research.

JEL-Classification: D24;F21;L60;O31
Keywords: Research and development, manufacturing, foreign direct investment, productivity
Frei zugängliche Version: (econstor)