“Reverse” transfers of technology from overseas subsidiaries to American firms

Although U.S. firms perform about 10 percent of their R and D overseas, very little is known about the transfer of technology and overseas subsidiaries to their U.S. parents. This paper presents the results of what seems to be the first systematic study of the extent, growth, nature, and effect of such “reverse” technology transfer. The results, based on detailed data regarding 29 overseas laboratores (which account for about 10 percent of all overseas R and D spending by U.S.-based firms), have implications for public policy and for the analysis of firms' productivity and profits. We believe that they will be of interest to management scientists, engineers, and economists.