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R&D Activities of Manufacturing Multinationals in China: Structure, Motivations and Regional Differences

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  • Kazuyuki Motohashi

Abstract

This paper investigates the R&D motivations of various multinationals operating in China, drawing on a large‐scale, firm‐level dataset of official Chinese statistics on science and technology activities. The present study shows that R&D efforts in China have intensified for both foreign‐owned and domestic firms, but less so for foreign‐owned firms, perhaps because foreign‐owned firms tend to operate on a foundation of technological capabilities developed within their home countries. Statistical analysis confirms that the major motivations for foreign R&D in China are production‐driven, not market‐driven or technology‐driven. Nevertheless, one sees significant variations in foreign R&D strategies from region to region. Guangdong is characterized by production‐driven R&D. In Beijing, R&D strategies tend to take a technology‐driven approach, drawing on the clusters of scientific institutions. In Shanghai, the R&D efforts of multinationals tend to focus on support for market‐driven R&D.

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  • Kazuyuki Motohashi, 2010. "R&D Activities of Manufacturing Multinationals in China: Structure, Motivations and Regional Differences," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(6), pages 56-72, November.
    • Handle: RePEc:bla:chinae:v:18:y:2010:i:6:p:56-72
    DOI: 10.1111/j.1749-124X.2010.01220.x
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    References listed on IDEAS

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    Cited by:

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    2. Liu, Meng-chun & Chen, Shin-Horng, 2012. "MNCs’ offshore R&D networks in host country's regional innovation system: The case of Taiwan-based firms in China," Research Policy, Elsevier, vol. 41(6), pages 1107-1120.
    3. Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.
    4. Robert Grosse, . "Innovation by MNEs in emerging markets," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    5. ITO Asei & Zhuoran LI & Min WANG, 2014. "What Types of Science and Technology Policies Stimulate Innovation? Evidence from Chinese firm-level data," Discussion papers 14056, Research Institute of Economy, Trade and Industry (RIETI).

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