Technological Diversity, Scientific Excellence and the Location of Inventive Activities Abroad: the Case of Nanotechnology

Our contribution to the expanding literature on the globalization of research andinnovation is to investigate the extent to which sector-specific developments in anemerging technology (such as increasing interdisciplinarity and complexity) affectinventive activities developed abroad. We look at how technological diversity andscientific excellence of host countries in the field of nanotechnology affect thedevelopment of inventive activities by US multinational companies (MNCs). We identifythe most active US-based MNCs in nanotechnology-related patenting and examinelocation decisions of these companies and their international subsidiaries. Econometricresults confirm our hypothesis that technological breadth of host countries positivelyinfluence the expected number of inventions developed abroad by US MNCs. S&Tcapabilities of countries also have a positive impact on the decision to invent abroad,while the influence of market specific factors is less clear...