Global R&D in the Aerospace and Defence Industry. Knowledge Creation with Local Firms in Host Countries

Resumen

In this paper we examine  the impact of host country (HC) factors on OEM (Original Equipment Manufacturers) aerospace firms and  top specialized supplier aerospace firms (TIER), for knowledge creating and sharing with local HCs inventors. Data sources include a sample of 874 international plants of aerospace companies and information from the HCs in which they locate a plant. The results showed the existence of knowledge spillovers from aerospace R&D and research institutions produced in HCs. The OEM group is more efficient than the TIER group in appropriating aerospace R&D. On the contrary, TIER group is  more globalized and their knowledge is more based on their own expertise than on in-house R&D.  Foreign aerospace firms benefit specially from research institutions’ knowledge spillovers produced in related fields to the aerospace industry.