The internationalisation of Western firms' R&D in China

Oliver Gassmann and Marcus Matthias Keupp

International Journal of Entrepreneurship and Small Business, 2008, vol. 6, issue 4, 536-561

Abstract: During the last ten years, 400 out of the Fortune Top 500 have established at least one R%D unit in China. We investigate into this highly relevant phenomenon that seems to contradict existing theory on international R%D. We propose that there is a missing link in theory, developing this link by introducing the concept of multiplicative capacity in analogy to Cohen and Levinthal's absorptive capacity. We test our propositions by using data from a survey we did on Western firms' R%D activities in China. Results show a good applicability of our concept and its relations to the competitive advantage theory.

Keywords: research and development; international R&D; international management; multinational corporations; MNCs; China; exact methods; nonparametric statistics; Western firms; multiplicative capacity; competitive advantage. (search for similar items in EconPapers)
Date: 2008
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