International operations and corporate R&D investment: Evidence from China

Ying Fu, Jiaying Li and Ying Wu

PLOS ONE, 2024, vol. 19, issue 9, 1-15

Abstract: This paper presents an examination of the relationship between international operations and corporate R&D investment. Using a large sample of Chinese listed firms for the 2009–2022 period and the ordinary least squares method, we find that international operations have a positive effect on corporate R&D investment. The finding remains valid after a battery of robustness tests. Mechanism tests show that international operations increase corporate R&D investment by diversifying product demand instead of increasing firms’ international knowledge acquisition. This paper provides new evidence on the role of international operations in innovation activities.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0308290

DOI: 10.1371/journal.pone.0308290

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