Book contents
- Frontmatter
- Contents
- Acknowledgements
- List of Contributors
- 1 Introduction
- 2 How Financial Liberalization Led in the 1990s to Three Different Cycles of ‘Manias, Panics and Crashes’ in Middle-Income Countries
- 3 Timing the Mexican 1994–95 Financial Crisis using a Markov Switching Approach
- 4 Exchange Rates, Growth and Inflation: What If the Income Elasticities of Trade Flows Respond to Relative Prices?
- 5 Alternative Measures of Currency and Asset Substitution: The Case of Turkey
- 6 Competitive Diversification in Resource Abundant Countries: Argentina after the Collapse of the Convertibility Regime
- 7 Foreign Portfolio Investment, Stock Market and Economic Development: A Case Study in India
- 8 Transnational Corporations and the Internationalization of Research and Development Activities in Developing Countries: The Relative Importance of Affiliates in Asia and Latin America
- 9 External Debt Nationalization as a Major Tendency on Brazilian External Debt in the Twentieth Century: The Shifting Character of the State during Debt Crisis
- 10 Prudential Regulation and Safety Net: Recent Transformations in Brazil
- 11 Re-crafting Bilateral Investment Treaties in a Development Framework: A Comparative Regional Perspective
8 - Transnational Corporations and the Internationalization of Research and Development Activities in Developing Countries: The Relative Importance of Affiliates in Asia and Latin America
Published online by Cambridge University Press: 05 March 2012
- Frontmatter
- Contents
- Acknowledgements
- List of Contributors
- 1 Introduction
- 2 How Financial Liberalization Led in the 1990s to Three Different Cycles of ‘Manias, Panics and Crashes’ in Middle-Income Countries
- 3 Timing the Mexican 1994–95 Financial Crisis using a Markov Switching Approach
- 4 Exchange Rates, Growth and Inflation: What If the Income Elasticities of Trade Flows Respond to Relative Prices?
- 5 Alternative Measures of Currency and Asset Substitution: The Case of Turkey
- 6 Competitive Diversification in Resource Abundant Countries: Argentina after the Collapse of the Convertibility Regime
- 7 Foreign Portfolio Investment, Stock Market and Economic Development: A Case Study in India
- 8 Transnational Corporations and the Internationalization of Research and Development Activities in Developing Countries: The Relative Importance of Affiliates in Asia and Latin America
- 9 External Debt Nationalization as a Major Tendency on Brazilian External Debt in the Twentieth Century: The Shifting Character of the State during Debt Crisis
- 10 Prudential Regulation and Safety Net: Recent Transformations in Brazil
- 11 Re-crafting Bilateral Investment Treaties in a Development Framework: A Comparative Regional Perspective
Summary
Abstract
The aim of this chapter is to analyze the internationalization of research and development activities carried out by transnational corporations. Based on information about U.S. transnational corporations, provided by the Bureau of Economic Analysis, this chapter seeks to assess how such corporations allocate their R&D resources abroad, comparing the role of Asia and Latin America affiliates.
Introduction
As of the 1990s, after a period of retraction resulting from the 1980s debt crisis, Latin American (LA) countries have started to attract significant volumes of Foreign Direct Investment (FDI) again, especially to the largest countries in the region: Brazil, Mexico, and Argentina. From an average share of about 5.7% in FDI world flows in the period 1985–1990, LA countries reached an annual average of about US$ 26.7 billions between 1991 and 1996, and of US$ 89.1 billions between 1997 and 2000, which represented about 10% of the world total in each period.
As a result, the already high degree of internationalization of the productive structure in LA countries became even higher. Considering the 500 largest corporations in the region, the foreign companies answered for an average of about 25% of sales from 1990 to 1992. In the period 1998–1999, this percentage increased to 43%. Regarding the 100 largest LA companies in the manufacturing sector in the same period, the foreign share increased from 53% to 63% (Mortimore et al, 2001).
- Type
- Chapter
- Information
- Capital Without BordersChallenges to Development, pp. 147 - 164Publisher: Anthem PressPrint publication year: 2010