The effects of FDI in R&D on home countries, the case of Switzerland

The purpose of this paper is to participate in the discussion of the effects of outward FDI in R&D on the home country. The main possible threat for home economies is the relocation of R&D activities to foreign regions and, as a result, the loss of technological capacity. This study contributes to this issue by analysing the role played by the home country in the development of the multinational enterprises’ innovative activities. Three different elements will be evaluated: the extent of R&D activities operated outside the home country; the compared value of foreign and home R&D activities; and the role of the home country as a source of knowledge. These elements are investigated through an analysis of patents and patent citations of 71 Swiss MNEs issued between 1978 and 2006.