Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States

  title={Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States},
  author={Wilbur Chung and Juan Alc{\'a}cer},
  journal={Management Science},
To what extent do firms go abroad to access technology available in other locations? This paper examines whether and when state technical capabilities attract foreign investment in manufacturing from 1987-1993. We find that on average state R&D intensity does not attract foreign direct investment. Most investing firms are in lower-tech industries and locate in low R&D intensity states, suggesting little interest in state technical capabilities. In contrast, we find that firms in research… CONTINUE READING
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