Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/81423 
Year of Publication: 
2010
Series/Report no.: 
IFN Working Paper No. 832
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
In this paper, I investigate whether instead of strengthening home-based production, government R&D-subsidies can induce R&D-intensive firms to locate production abroad. Investigating firm-level data on Swedish MNEs, however, I find no evidence of such relocation. R&D subsidies rather tend to en courage export production at the expense of foreign production. The theory presented suggests that this is consistent with technology transfer costs, which outweigh trade costs for physical goods.
Subjects: 
Multinational Firms
R&D
Subsidies
Location
Empirical Analyses
JEL: 
F23
L13
O33
Document Type: 
Working Paper

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