The impact of home and host country institutional development on multinationals’ R&D intensity

This empirical article examines how the institutional development of home country and host countries in which multinational enterprises (MNEs) are embedded can drive MNEs’ research (R&D) intensity. In doing so, this study analyzes 967 firm-year observations 234 pharmaceutical firms from 30 developed less period 2010 to 2017. We find support for internationalization toward as a driver R&D intensity at firm level. Furthermore, we that positive effect is stronger MNEs institutionally countries. The results help managers, researchers, policymakers better understand innovation process R&D-intensive industries. JEL CLASSIFICATION: M16, O32