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Offshore versus domestic: Can EM MNCs reach higher R&D quality abroad?

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  • Kerstin J. Schaefer

    (Institute of Economic and Cultural Geography)

  • Ingo Liefner

    (Institute of Economic and Cultural Geography)

Abstract

In the current discourse about the technological development of emerging market multinational companies (EM MNCs), the internationalization of research and development (R&D) activities is increasingly discussed as a strategy for catching-up to established MNCs. EM MNCs attempt to use international R&D to tap into technologically superior resources abroad which are not available to them in their home market. This study compares the performance of domestic and offshore R&D activities to look into EM MNCs’ ability to conduct high-quality R&D abroad. We use the Chinese telecommunication equipment manufacturer Huawei as a best practice case study. To map their worldwide patent quality pattern, we propose a multiple-patent-office-approach to ensure a balanced view on their activities with data from SIPO, USPTO and EPO. We also employ three different measures to capture different dimensions of patent quality. The results of the empirical model support the assumption of higher quality for patents with knowledge from advanced offshore locations.

Suggested Citation

  • Kerstin J. Schaefer & Ingo Liefner, 2017. "Offshore versus domestic: Can EM MNCs reach higher R&D quality abroad?," Scientometrics, Springer;Akadémiai Kiadó, vol. 113(3), pages 1349-1370, December.
    • Handle: RePEc:spr:scient:v:113:y:2017:i:3:d:10.1007_s11192-017-2533-5
    DOI: 10.1007/s11192-017-2533-5
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    3. Schott, Lennart & Schaefer, Kerstin, 2023. "Acceptance of Chinese latecomers' technological contributions in international ICT standardization — the role of origin, experience and collaboration," LSE Research Online Documents on Economics 116987, London School of Economics and Political Science, LSE Library.
    4. Zeng Gang & Zhang Yi & Cao Xianzhong, 2023. "Cross-Border knowledge pipelines and innovation performance of chinese firms: evidence from Zhangjiang in Shanghai," ZFW – Advances in Economic Geography, De Gruyter, vol. 67(1), pages 33-46, May.
    5. Mariane Santos Françoso & Ron Boschma & Nicholas Vonortas, 2024. "Regional diversification in Brazil: The role of relatedness and complexity," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    6. Yuefang Si & Yi Zhang & Tangwei Teng, 2021. "R&D internationalization and innovation performance of Chinese enterprises: The mediating role of returnees and foreign professionals," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2194-2212, December.
    7. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco, 2022. "Innovativeness and the relevance of political ties in Chinese MNEs," Journal of Business Research, Elsevier, vol. 153(C), pages 494-508.
    8. Kerstin J. Schaefer, 2020. "Catching up by hiring: The case of Huawei," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1500-1515, December.
    9. Ludan Wu & Dylan Sutherland & John R. Anderson, . "Are emerging market MNEs more attracted towards better patent enforcement regimes when undertaking greenfield R&D-focused FDI?," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    10. Schott, Lennart & Schaefer, Kerstin J., 2023. "Acceptance of Chinese latecomers' technological contributions in international ICT standardization — The role of origin, experience and collaboration," Research Policy, Elsevier, vol. 52(1).
    11. Dylan Sutherland & John Anderson & Ludan Wu & Sean Severe, 2024. "Exploring the impact of establishment mode on intangible strategic asset creation in Chinese MNEs: springboard cross-border strategic asset-seeking M&As versus greenfield R&D-related FDI projects," Asian Business & Management, Palgrave Macmillan, vol. 23(4), pages 519-543, September.
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