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R&D offshoring, technology learning and R&D efforts of host country firms in emerging economies

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  • Qu, Zhe
  • Huang, Can
  • Zhang, Mingqian
  • Zhao, Yanyun

Abstract

This paper studies how ease of learning by host country firms in emerging economies shapes decisions regarding their R&D efforts in response to R&D offshoring by multinational enterprises (MNEs). We develop a two-stage game-theoretic model to analyze strategic interaction between the R&D decisions of the foreign affiliates of MNEs and the host country firms. An empirical analysis of 12,309 manufacturing firms in the Information and Communications Technologies sector in China supports the key contributions of the model. That is, R&D offshoring has a positive effect on the R&D efforts of host country firms in emerging economies. However, the positive effect diminishes as the geographical distance between the foreign affiliates and the host country firms increases.

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  • Qu, Zhe & Huang, Can & Zhang, Mingqian & Zhao, Yanyun, 2013. "R&D offshoring, technology learning and R&D efforts of host country firms in emerging economies," Research Policy, Elsevier, vol. 42(2), pages 502-516.
    • Handle: RePEc:eee:respol:v:42:y:2013:i:2:p:502-516
    DOI: 10.1016/j.respol.2012.07.001
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    7. Niccolò Pisani & Joan Enric Ricart, 2018. "Offshoring Innovation to Emerging Countries: The Effects of IP Protection and Cultural Differences on Firms’ Decision to Augment Versus Exploit Home-Base-Knowledge," Management International Review, Springer, vol. 58(6), pages 871-909, December.

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    More about this item

    Keywords

    R&D; Offshoring; Spillover; Emerging economies;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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