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Companies with R&D Abroad Make Germany a Strong Research Location

DIW Weekly Report 46/47 / 2017, S. 477-487

Heike Belitz

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In recent years, German companies have invested more in research and development (R&D) abroad. After a prolonged plateau period, the proportion of investment abroad rose to around 35 percent; concurrently R&D expenditure in Germany has continued to rise sharply. Growth abroad did not occur at the expense of domestic research. Foreign companies in Germany have also invested more in R&D recently but have not yet topped the 2011 record high. Measured by stocks of foreign direct investment, they should still have some potential for higher expenditure in R&D. In international comparison, the growth in private R&D investment in Germany in recent years was high. This was mainly driven by German companies with R&D abroad.

JEL-Classification: D24;F21;L60;O31
Keywords: Research and development, globalisation, multinational companies
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