Does foreign ownership matter for the innovation activities of Finnish firms?

Bernd Ebersberger, Hans Lööf, Juha Oksanen

Research output: Book/ReportReportProfessional

Abstract

In this study we investigate the impact of foreign ownership on the innovation activities of Finnish firms. We analyse the impact on innovation input and on innovation output. Additionally, we analyse the effect foreign ownership has on the companies' embeddedness in the innovation system and the effect foreign ownership has on public R&D funding. Finally, we investigate the firms' productivity and its dependence on foreign vs. domestic ownership. The study contributes three features to the literature. First, it investigates multiple indicators to find the effects of foreign ownership on the companies' performance. Second, the study distinguishes between different types of foreign ownership based on country of ownership; by doing so, the study accounts for home country effects through different governance styles, which are precluded in a mere foreign / domestic dichotomy. The study also singles out domestic multinational firms so as to investigate the impact multinationality has on the innovation activities. Finally, the study employs sample selection models, as well as a multiequation production function model in the vein of Crepon, Duguet and Mairesse (1998), to investigate the impact of foreign ownership.
Original languageEnglish
Place of PublicationEspoo
PublisherVTT Technical Research Centre of Finland
Number of pages49
ISBN (Electronic)951-38-6578-9
Publication statusPublished - 2005
MoE publication typeNot Eligible

Publication series

NameVTT Working Papers
PublisherVTT
No.26
ISSN (Electronic)1459-7683

Fingerprint

Finnish firms
Foreign ownership
Innovation activities
Innovation
Ownership
Company performance
Firm productivity
Sample selection model
Funding
Multinational firms
Governance
Multinationality
Innovation system
Dichotomy
Embeddedness
Country effects
Production function
Home country

Keywords

  • foreign ownership
  • innovation activities
  • innovation gaps
  • CIS
  • innovation input
  • innovation output
  • companies
  • public R&D funding
  • Finland

Cite this

Ebersberger, B., Lööf, H., & Oksanen, J. (2005). Does foreign ownership matter for the innovation activities of Finnish firms? Espoo: VTT Technical Research Centre of Finland. VTT Working Papers, No. 26
Ebersberger, Bernd ; Lööf, Hans ; Oksanen, Juha. / Does foreign ownership matter for the innovation activities of Finnish firms?. Espoo : VTT Technical Research Centre of Finland, 2005. 49 p. (VTT Working Papers; No. 26).
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Ebersberger, B, Lööf, H & Oksanen, J 2005, Does foreign ownership matter for the innovation activities of Finnish firms? VTT Working Papers, no. 26, VTT Technical Research Centre of Finland, Espoo.

Does foreign ownership matter for the innovation activities of Finnish firms? / Ebersberger, Bernd; Lööf, Hans; Oksanen, Juha.

Espoo : VTT Technical Research Centre of Finland, 2005. 49 p. (VTT Working Papers; No. 26).

Research output: Book/ReportReportProfessional

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Ebersberger B, Lööf H, Oksanen J. Does foreign ownership matter for the innovation activities of Finnish firms? Espoo: VTT Technical Research Centre of Finland, 2005. 49 p. (VTT Working Papers; No. 26).