This paper aims to assess the impact of both
geographic and industrial diversification of economic
activities on the productivity performance of large European
R&D Multinational Enterprises (MNEs). Based on
the worldwide subsidiaries of these firms, we measure the
performance of the firms according to their level of
industrial diversification and globalisation that we proxy
with the presence and importance of subsidiaries in the EU,
North America and Asia–Pacific regions. The sample
consists of large R&D firms that represent about 80 % of
total European R&D. In general, the results indicate a
positive impact from globalisation on firms’ R&D productivity,
especially in the US, while a negative impact for
industrial diversification is found.