The International Allocation of Research Activity by US Multinationals

  • Sanjaya Lall


It now seems to be widely accepted in the empirical literature on trade and investment that enterprises need some form of ‘monopolistic advantage’ to compete in the highly imperfect markets for products and factors that characterise modern industry. Studies of the patterns of comparative advantage and of direct investment flows, starting from different premises, have come increasingly to converge on a set of explanatory factors that are practically identical with the ‘barriers to entry of new competition’ which have been identified by the industrial organisation literature to lead to the growth of large firms, and to the emergence of concentrated market structures, within the advanced countries.2 Thus, the forces that lead to successful growth at home also seem to provide the leading firms with the edge that they need to sell their products abroad or to set up foreign affiliates and serve overseas markets by producing abroad.


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Copyright information

© Sanjaya Lall 1985

Authors and Affiliations

  • Sanjaya Lall
    • 1
    • 2
  1. 1.Institute of Economics and StatisticsUK
  2. 2.Oxford UniversityGreen CollegeUK

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