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The impact of R&D on value added for domestic and foreign firms in a newly industrialized economy

by: Eric W Tsang, Paul S Yip, Mun H Toh
International Business Review, Vol. 17, No. 4. (August 2008), pp. 423-441.


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This study compares the impact of R&D on value added between domestic and foreign firms in Singapore. The analysis is based on a comprehensive panel database from 1993 to 1999 provided by the Singapore Government. Our results found that R&D investments of foreign firms generated higher value added than those of domestic firms, and that the difference in value added contributed by R&D was moderated by the type of R&D and the technological level of industry. The study supports the argument that the ownership advantages possessed by foreign firms, relative to domestic firms, have positive effects on R&D performance.


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