The R & D Factor in International Trade and International Investment of United States Industries

William Gruber, Dileep Mehta, Raymond Vernon
1967 Journal of Political Economy  
Analyzes international trade, international investment, and sales of foreign U.S. manufacturing subsidiaries in order to determine the relationship between the intensity of R & D effort and the international activity. Those industries with higher levels of research intensity are found to be the industries with more favorable performance in international trade and higher levels of foreign investment and sales of foreign manufacturing facilities. R&D intensive industries were also found to be
more » ... lso found to be more concentrated, of larger scale of operations, and subject to higher proportions of fixed to total costs. The reasons for the link between R&D intensity and international activity are explored and some tentative answers are suggested.
doi:10.1086/259235 fatcat:hrp7gf3v6vg2rbj2yq5eg2wg3e