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R&D and patenting activities of foreign firms in China: The case of Japan

Chih-Hai Yang, Toshiyuki Matsuura () and Tadashi Ito

Japan and the World Economy, 2019, vol. 49, issue C, 151-160

Abstract: This study investigates the research and development (R&D) and patenting activities of foreign firms in China. Utilizing a panel dataset of Japanese affiliates during the period 2001–2007, we first examine the determinants of R&D activity and find that local market-oriented firms place more emphasis on R&D, whereas process export-oriented firms are less likely to conduct R&D. Affiliates within a large business group that has more affiliates have a higher propensity to undertake R&D. Using only firms with positive R&D expenditures, we next estimate the patent production function. Results indicate that the patent elasticity of R&D for Japanese affiliates is high, suggesting that they are more productive on patent production than other firms. Moreover, local market-oriented firms do need more patents to protect their products, whereas scientific firms demonstrate a lower willingness to register patents in China.

Keywords: Multinational enterprises; R&D; Patent (search for similar items in EconPapers)
JEL-codes: F23 L21 M16 O31 O32 (search for similar items in EconPapers)
Date: 2019
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