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The internationalisation of Western firms' R&D in China

Author

Listed:
  • Oliver Gassmann
  • Marcus Matthias Keupp

Abstract

During the last ten years, 400 out of the Fortune Top 500 have established at least one R%D unit in China. We investigate into this highly relevant phenomenon that seems to contradict existing theory on international R%D. We propose that there is a missing link in theory, developing this link by introducing the concept of multiplicative capacity in analogy to Cohen and Levinthal's absorptive capacity. We test our propositions by using data from a survey we did on Western firms' R%D activities in China. Results show a good applicability of our concept and its relations to the competitive advantage theory.

Suggested Citation

  • Oliver Gassmann & Marcus Matthias Keupp, 2008. "The internationalisation of Western firms' R&D in China," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 6(4), pages 536-561.
    • Handle: RePEc:ids:ijesbu:v:6:y:2008:i:4:p:536-561
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