In this study, we investigate the effects of corporate R&D activities on their outward foreign direct investment (OFDI) and foreign investment by using 42,421 company-year data from 2008 to 2014 provided by Microdata Service System of the Korean Bureau of Statistics. From multi-variate fixed effects panel regression, we conclude that there exists a positive effect of R&D investment level of firms in Korea on OFDI. Moreover, there is a negative effect of R&D accomplishments (the number of patents and utility model rights), on their OFDI. No significant relation was found between OFDI and additional R&D activities (intellectual property E-business system, R&D outsourcing and strategic R&D partnership). In addition, there exist positive effects of R&D investment level of firms in Korea on foreign investment. Furthermore, there is a positive effect of R&D accomplishments (the number of patents and utility model rights), on their foreign investment. Lastly, additional R&D activities (intellectual property E-business system, R&D outsourcing and strategic R&D partnership) had positive effect on foreign investment. Implications of the study indicate that through R&D competitiveness and awareness are created through overseas expansion and attraction of foreign capital
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