Working Paper No. 693

Cross-Border Acquisition or Greenfield Entry: Does it Matter for Affiliate R&D?

Published: January 30, 2007Pages: 49Keywords: FDI; M&A; Greenfield Investment; R&D; Multinational FirmJEL-codes: F23; L10; L20; O30

Cross-Border Acquisition or Greenfield Entry: Does it Matter for Affiliate R&D? Olivier Bertrand, Katariina Hakkala and Pehr-Johan Norbäck

This paper investigates how the entry mode of foreign direct investment (FDI) affects the affiliate R&D activities using unique data on Swedish multinational firms over a long period of time (1970 to 1998). On average, acquired affiliates are more likely to do R&D and have a higher level of R&D intensity than affiliates created by greenfield entry. This difference in observed R&D is explained by differences in parent, affiliate, industry and country characteristics as well as by different reactions to these characteristics, as predicted by the recent theoretical literature on international mergers and acquisitions (M&As). The results also suggest that M&As are, to a larger extent, motivated by asset-seeking motives than greenfield entry, especially in the 1990s.


Pehr-Johan Norbäck


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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

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