Abstract
We examine in this paper the nature of multinational corporations’ (MNC) R&D activity in Singapore and whether it facilitates knowledge flow from MNCs to local inventors using U.S. patent and patent citations data. Comparing the quality of patents taken out by Singapore local inventors, MNC inventors in Singapore, and MNC inventors elsewhere using various patent citations-based measures, we do not find any difference between these three groups of patents. We also find that Singapore local inventors cite MNC patents significantly more intensively than a random rest-of-the-world patent does. Regression analysis reveals that the intensity of a Singapore local patent citing a nonSingapore MNC patent is significantly correlated with the number of MNCs’ patents invented in Singapore, suggesting that MNCs’ Singapore subsidiaries facilitate knowledge flow from MNCs to local inventors. JEL classification: O3, F2
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