Brain drain, brain gain and brain exchange: the rôle of MNEs in a small open economy

Based on European and US patent statistics, this paper is an empirical analysis of R&D activities carried out by foreign MNEs in Belgium over the last two decades. The paper investigates the role of demand-pull and technology-push determinants of the MNE's decision to delocalise its R&D in a host country as well as the impact of these activities on any brain drain of Belgian R&D personnel. The results suggest that MNEs invest in R&D in Belgium mainly in order to gain access to the local science base. The presence of these companies positively affects the demand for highly skill... Mehr ...