JAPANESE CORPORATE STRATEGIES ON LOCATION CHOICES OF R&D ACTIVITIES IN CHINA: IDENTIFYING THE ROLE OF KNOWLEDGE SPILLOVERS

Simon Liu (), Naohiro Shichijo and Yasunori Baba
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Simon Liu: Department of Advanced Interdisciplinary Studies, The University of Tokyo, 4-6-1 Komaba, Meguro-ku, Tokyo 153-8904, Japan
Naohiro Shichijo: Waseda Institute for Advanced Study, Waseda University, Nishi-Waseda, Shinjuku-ku, Tokyo 169-8050, Japan
Yasunori Baba: Research Center for Advanced Science and Technology, The University of Tokyo, 4-6-1 Komaba, Meguro-ku Tokyo 153-8904, Japan

Journal of Enterprising Culture (JEC), 2010, vol. 18, issue 02, 167-191

Abstract: The objective of this research is to analyze the geographical distribution of the research and development (R&D) collaboration of Japanese multinational enterprises (MNEs) in China. We analyze location strategies of overseas R&D activities on a regional instead of a national level. We first discuss the linkage of foreign direct investment (FDI) and ensue knowledge spillovers from MNEs to a host country, and further analyze how the knowledge spillovers influence MNEs in making their decisions on location choices in China. Using conditional logit estimation from U.S. patent data, we find that Japanese MNEs are in proximity to the R&D-intensive locations and to the clustering of Japanese MNEs, but have a tendency to keep a distance from R&D-competitive locations that would be endangered by outward knowledge spillovers. In addition, small and medium MNEs are influenced more by location factors, such as R&D and FDI, than large MNEs. So are capital-intensive MNEs than non-capital-intensive MNEs.

Keywords: Japanese multinational enterprise; location choice; R&D; knowledge spillover; China (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1142/S0218495810000549

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