Economics at your fingertips  

Management of Offshore R&D in China: Cross Country Differences in Motivation and Performance

Kazuyuki Motohashi ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, multinationals’ motivations for R&D in China are compared across firms’ home countries. It is found that five types of companies (Europe, Japan, the other Asia, US and Taiwan, Hong Kong or Macau owned) can be grouped into two. Europe, Japan and the other Asia for production/market driven R&D, but the degree of market orientation is stronger for European firms, followed by Japanese and the other Asia. Another group is US and THKM firms for technology/costdriven R&D. It should be noted that THKM firms are inclined toward production oriented R&D as well. We have also investigated the relationship between types of R&D activities and firms’ performances. In general, US firms are more profitable than Japanese ones, but this difference in profitability disappears once it is controlled for R&D type variables. In terms of an association of R&D type variables with profitability, heterogeneous results are obtained by host countries. The degree of linkage with universities and PRIs is significant for US firms, while the degree of R&D linkage with home country is important for European firms. It is also found that firm age is strongly correlated with profitability, while whether a firm is a joint venture with a local company or a wholly owned subsidiary does not make any difference.

Keywords: China; multinational corporation; offshore R&D; profitability (search for similar items in EconPapers)
JEL-codes: F23 O32 O33 (search for similar items in EconPapers)
Date: 2012-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Institutions and Economies 2.4(2012): pp. 101-120

Downloads: (external link) original version (application/pdf)

Related works:
Journal Article: Management of Offshore R&D in China: Cross Country Differences in Motivation and Performance (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2020-04-24
Handle: RePEc:pra:mprapa:50094