Oligopolistic Imitation Theories of Foreign Direct Investment And European Dir

Cover Oligopolistic Imitation Theories of Foreign Direct Investment And European Dir
Oligopolistic Imitation Theories of Foreign Direct Investment And European Dir
Edward M Edward Montgomery Graham
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■32- The product life cycle as an explanation of foreign direct investment first appeared in Raymond Vernon's article "International Investment and International Trade in the Product Cycle, " Quarterly Journal of Economics, 80 (May, 1966). The idea is further developed in Raymond Vernon, Sovereignty at Bay (Basic Books, 1971) and in Louis T. Wells, The Product Life Cycle and International Trade (Harvard University Graduate School of Business Administration, 1973) ; it should be noted that the p
...roduct life cycle incorporates many of the ideas of Hymer ' s 1960 study.
9 In many industries major U. S. Firms have historically been well advanced over their non-U. S. Counterparts in industrial innovation. This does not imply that large U. S. Firms, or even the United States itself, have been the major sources of technological innovation. Rather, U. S.
firms have been at the forefront of applying technological innovation - often borrowed from somewhere else - to the development of commerciable products and processes.


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