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R&D internationalization and innovation performance

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  • Hsu, Chia-Wen
  • Lien, Yung-Chih
  • Chen, Homin

Abstract

This paper investigates the effect of R&D internationalization on firm innovation performance. Using a longitudinal dataset of Taiwanese high-tech firms, we test the effects of R&D internationalization in terms of intensity and diversity. Results reveal a curvilinear U-shaped relationship, suggesting the benefits of R&D internationalization eventually outweigh the costs after critical levels of intensity and diversity. Additionally, we find that a firm's experience in foreign expansion may have a positive moderating impact on the relationship between R&D internationalization and innovation performance, which suggests that the effect is contingent on the firm's capability in dealing with the complexities and uncertainties inherent in international business.

Suggested Citation

  • Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2015. "R&D internationalization and innovation performance," International Business Review, Elsevier, vol. 24(2), pages 187-195.
    • Handle: RePEc:eee:iburev:v:24:y:2015:i:2:p:187-195
    DOI: 10.1016/j.ibusrev.2014.07.007
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