R&D transfer of MNCs: the perspective of China

Qiong He and Jingyuan Zhao

International Journal of Learning and Intellectual Capital, 2011, vol. 8, issue 2, 155-166

Abstract: This paper studies the transfer characteristics of multinational corporations' (MNCs) international R&D. To use local R&D resources, adapt to the complexity of market demands, reduce the costs and risks of new product development process, MNCs gradually transfer home country R&D to international R&D. From the geographical distribution, global R&D shows from the triangular to scattering the developing countries, particularly the newly industrialised countries are becoming emerging markets of developed countries' overseas R&D investment. The location factors of MNCs' R&D are mainly impacted by market size, foreign direct investment (FDI), intellectual property rights protection and human capital, which are the important driving factors for MNCs' R&D transfer to China. MNCs establish overseas R&D institutions by means of new built R&D institution, acquisitions and joint ventures. The study results of paper have a great practical value and can provide a reference for developing countries in terms of attracting MNCs' R&D investment, having access to advanced technologies and learning new models of management.

Keywords: multinational corporations; MNCs; international R&D; research and development; R&D transfers; location factors; China; transfer characteristics; market demands; cost reduction; risks; new product development; NPD; home countries; geographical distribution; globalisation; triangular distribution; scattering trends; developing countries; newly industrialised countries; emerging markets; developed countries; market size; foreign direct investment; FDI; intellectual property rights; rights protection; human capital; research institutions; acquisitions; mergers; joint ventures; advanced technologies; learning innovation; intellectual capital; management. (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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