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Can locally-recruited R&D personnel significantly contribute to multinational subsidiary innovation in an emerging economy?

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  • Li, Xiaoying
  • Wang, Jue
  • Liu, Xiaming

Abstract

This paper assesses the role of locally-recruited R&D personnel relative to their expatriate counterparts as regards innovation in multinational subsidiaries in an emerging economy. Two hypotheses are developed based on a network approach to multinational enterprises in an emerging economy setting, and tested on a sample of 317 multinational subsidiaries in China. Our results indicate that locally-recruited R&D personnel have played a limited role in innovation within multinational subsidiaries. While making a marginally significant contribution to R&D output due to their direct supply of technological knowledge, locally-recruited R&D personnel are unable to translate subsidiary R&D expenditure into successful patent applications probably because of their lack of technology management skills. In comparison, R&D expatriates significantly contribute to multinational subsidiary R&R output in both dimensions.

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  • Li, Xiaoying & Wang, Jue & Liu, Xiaming, 2013. "Can locally-recruited R&D personnel significantly contribute to multinational subsidiary innovation in an emerging economy?," International Business Review, Elsevier, vol. 22(4), pages 639-651.
    • Handle: RePEc:eee:iburev:v:22:y:2013:i:4:p:639-651
    DOI: 10.1016/j.ibusrev.2012.12.002
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