Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • December 2002
  • Article
  • Management Science

Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States

By: Juan Alcacer and Wilbur Chung
  • Format:Print
  • | Pages:21
ShareBar

Abstract

To what extent do firms go abroad to access technology available in other locations? This paper examines whether and when state technical capabilities attract foreign investment in manufacturing from 1987-1993. We find that on average state R&D intensity does not attract foreign direct investment. Most investing firms are in lower-tech industries and locate in low R&D intensity states, suggesting little interest in state technical capabilities. In contrast, we find that firms in research-intensive industries are more likely to locate in states with high R&D intensity. Foreign firms in the pharmaceutical industry value state R&D intensity the most, at a level twice that of firms in the semiconductor industry, and four times that of electronics firms. Interestingly, not only firms from technically lagging nations, but also some firms from technically leading nations are attracted to R&D intensive states. This suggests that beyond catching up, firms use knowledge-seeking investments also to source technical diversity.

Keywords

Knowledge Acquisition; Foreign Direct Investment; Research and Development; Information Technology; Production; Geographic Location; United States

Citation

Alcacer, Juan, and Wilbur Chung. "Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States." Management Science 48, no. 12 (December 2002): 1534–1554.
  • Find it at Harvard
  • Read Now

About The Author

Juan Alcacer

Strategy
→More Publications

More from the Authors

    • December 2022
    • Faculty Research

    Iberdrola: Leading the Energy Revolution

    By: Juan Alcácer and Emer Moloney
    • December 2022 (Revised January 2023)
    • Faculty Research

    Circles.Life at a Crossroads of Growth

    By: Juan Alcacer and Adina Wong
    • November 2022
    • Faculty Research

    Introduction to the RC Strategy Course 2023

    By: Juan Alcacer
More from the Authors
  • Iberdrola: Leading the Energy Revolution By: Juan Alcácer and Emer Moloney
  • Circles.Life at a Crossroads of Growth By: Juan Alcacer and Adina Wong
  • Introduction to the RC Strategy Course 2023 By: Juan Alcacer
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College