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Localization and Overseas R&D Activity: The Case of Taiwanese Multinational Enterprises in China

Published on Mar 1, 2015in R & D Management2.35
· DOI :10.1111/radm.12059
Chih-Hai Yang2
Estimated H-index: 2
(NCU: National Central University),
Kazunobu Hayakawa11
Estimated H-index: 11
(Japan External Trade Organization)
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Abstract
This study investigates the determinants of overseas research and development (R&D) and the influences of various aspects of localization on affiliates' R&D intensity. Using a dataset of Taiwanese multinational enterprises (MNEs) in China, the empirical estimations find that MNEs with a larger firm size, more R&D expenditure, and a higher outward foreign direct investments intensity tend to undertake R&D. Host regions' characteristics, particularly market size and R&D resources, do matter for attracting MNEs to conduct R&D locally. Crucially, affiliates' R&D intensity is related to the degree of localization. The degree of market localization and localization of the R&D network has a positive association with affiliates' R&D intensity. From the perspective of R&D policy, a country with healthy R&D infrastructures helps attract the establishment of R&D labs of MNEs.
  • References (43)
  • Citations (9)
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References43
Newest
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#2Mats ForsgrenH-Index: 26
Last.Ulf HolmH-Index: 21
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#1Bronwyn H. Hall (University of California, Berkeley)H-Index: 71
#1Chih-Hai Yang (NCU: National Central University)H-Index: 9
#2Yi-Yin Wu (National Chengchi University)H-Index: 1
Last.Hui-Lin Lin (NTU: National Taiwan University)H-Index: 9
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#1Carlos Garcia-Pont (University of Navarra)H-Index: 4
#2J. Ignacio Canales (St And: University of St Andrews)H-Index: 5
Last.Fabrizio NoboaH-Index: 2
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#1Julian Birkinshaw (LBS: London Business School)H-Index: 52
#2Torben Pedersen (CBS: Copenhagen Business School)H-Index: 45
Cited By9
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#1Chih Hai Yang (NCU: National Central University)H-Index: 1
#2Toshiyuki Matsuura (Keio: Keio University)H-Index: 10
Last.Tadashi Ito (Gakushuin University)H-Index: 4
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#1Si Zhang (CAS: Chinese Academy of Sciences)H-Index: 1
#2Shasha Zhao (Middlesex University)H-Index: 1
Last.Marina Papanastassiou (Middlesex University)H-Index: 16
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