Yokota, Kazuhiko; Chen, Kung-Ming - In: International Economic Journal 26 (2012) 2, pp. 265-280
This paper presents a three-stage game to model the entry behavior of a multinational firm in the presence of R&D spillovers. The multinational firm's entry mode choice -- that is, to invest to set up a new plant or merge with a local firm -- is a function of the magnitude of spillovers, as well...