IDEAS home Printed from https://ideas.repec.org/a/kap/asiapa/v38y2021i3d10.1007_s10490-020-09705-1.html
   My bibliography  Save this article

MNE R&D internationalization in developing Asia

Author

Listed:
  • Shasha Zhao

    (Middlesex University Business School)

  • Marina Papanastassiou

    (Middlesex University Business School)

  • Robert D. Pearce

    (University of Reading)

  • Chie Iguchi

    (Keio University)

Abstract

In line with the recent shift of R&D internationalization towards developing Asia, this Perspective paper reviews, contextualises, and evaluates the evolving patterns of creation, transfer, and assimilation of knowledge in multinational enterprises (MNEs). A typology is proposed consisting of four stylized nodes: West (industrialized mature economies), East One (emerging industrializing economies of developing Asia), East Two (Asian economies at an earlier stage of industrialization), and East Three (Asian economies with limited visible signs of industrialization). Within these nodes, this paper applies an institution-based view to discuss their diverse national innovation environment (with particular attention paid to governments, indigenous firms, and institutional conditions), and the network perspective to propose an intra-regional knowledge hierarchy, reflecting dynamic knowledge links.

Suggested Citation

  • Shasha Zhao & Marina Papanastassiou & Robert D. Pearce & Chie Iguchi, 2021. "MNE R&D internationalization in developing Asia," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 789-813, September.
  • Handle: RePEc:kap:asiapa:v:38:y:2021:i:3:d:10.1007_s10490-020-09705-1
    DOI: 10.1007/s10490-020-09705-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10490-020-09705-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10490-020-09705-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 1-24, March.
    2. Wang, Jue, 2018. "Innovation and government intervention: A comparison of Singapore and Hong Kong," Research Policy, Elsevier, vol. 47(2), pages 399-412.
    3. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2015. "Reorganising global value chains and building innovation capabilities in Brazil and India," Research Policy, Elsevier, vol. 44(7), pages 1376-1386.
    4. Haakonsson, Stine Jessen & Ujjual, Vandana, 2015. "Internationalisation of R&D: New insights into multinational enterprises’ R&D strategies in emerging markets," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 26(2), pages 101-122.
    5. Mike Hobday, 1995. "Innovation in East Asia: Diversity and Development," Chapters, in: Mark Dodgson & Roy Rothwell (ed.), The Handbook of Industrial Innovation, chapter 8, Edward Elgar Publishing.
    6. Minyuan Zhao, 2006. "Conducting R& D in Countries with Weak Intellectual Property Rights Protection," Management Science, INFORMS, vol. 52(8), pages 1185-1199, August.
    7. Prema-Chandra Athukorala, 2008. "Singapore And Asean In The New Regional Division Of Labor," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 479-508.
    8. Altenburg, Tilman & Schmitz, Hubert & Stamm, Andreas, 2008. "Breakthrough China's and India's Transition from Production to Innovation," World Development, Elsevier, vol. 36(2), pages 325-344, February.
    9. Asakawa, Kazuhiro, 2001. "Organizational tension in international R&D management: the case of Japanese firms," Research Policy, Elsevier, vol. 30(5), pages 735-757, May.
    10. Bas, Christian Le & Sierra, Christophe, 2002. "'Location versus home country advantages' in R&D activities: some further results on multinationals' locational strategies," Research Policy, Elsevier, vol. 31(4), pages 589-609, May.
    11. Marcelo Cano-Kollmann & John Cantwell & Thomas J Hannigan & Ram Mudambi & Jaeyong Song, 2016. "Knowledge connectivity: An agenda for innovation research in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(3), pages 255-262, April.
    12. Anwar, Sajid & Nguyen, Lan Phi, 2014. "Is foreign direct investment productive? A case study of the regions of Vietnam," Journal of Business Research, Elsevier, vol. 67(7), pages 1376-1387.
    13. Shih-Chang Hung & Yung-Ching Tseng, 2017. "Extending the LLL framework through an institution-based view: Acer as a dragon multinational," Asia Pacific Journal of Management, Springer, vol. 34(4), pages 799-821, December.
    14. Paul Almeida & Anupama Phene, 2004. "Subsidiaries and knowledge creation: the influence of the MNC and host country on innovation," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 847-864, August.
    15. Sanjay Jain & Anil Nair & David Ahlstrom, 2015. "Introduction to the Special Issue: Towards a theoretical understanding of innovation and entrepreneurship in India," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 835-841, December.
    16. Hakanson, Lars & Nobel, Robert, 1993. "Determinants of foreign R&D in Swedish multinationals," Research Policy, Elsevier, vol. 22(5-6), pages 397-411, November.
    17. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
    18. Wonglimpiyarat, Jarunee, 2011. "Government programmes in financing innovations: Comparative innovation system cases of Malaysia and Thailand," Technology in Society, Elsevier, vol. 33(1), pages 156-164.
    19. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    20. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
    21. Arun Kumaraswamy & Ram Mudambi & Haritha Saranga & Arindam Tripathy, 2012. "Catch-up strategies in the Indian auto components industry: Domestic firms’ responses to market liberalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(4), pages 368-395, May.
    22. Weilei (Stone) Shi & Sunny Li Sun & Brian C Pinkham & Mike W Peng, 2014. "Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(3), pages 338-362, April.
    23. Khoury, Theodore A. & Peng, Mike W., 2011. "Does institutional reform of intellectual property rights lead to more inbound FDI? Evidence from Latin America and the Caribbean," Journal of World Business, Elsevier, vol. 46(3), pages 337-345, July.
    24. Lall, Sanjaya & Narula, Rajneesh, 2004. "FDI and its role in economic development: Do we need a new agenda?," Research Memorandum 019, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    25. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    26. John Cantwell & John H Dunning & Sarianna M Lundan, 2010. "An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(4), pages 567-586, May.
    27. Liu, Meng-chun & Chen, Shin-Horng, 2012. "MNCs’ offshore R&D networks in host country's regional innovation system: The case of Taiwan-based firms in China," Research Policy, Elsevier, vol. 41(6), pages 1107-1120.
    28. Robert C Ronstadt, 1978. "International R & D: The Establishment and Evolution of Research and Development Abroad by Seven U.S. Multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 9(1), pages 7-24, March.
    29. von Zedtwitz, Maximilian & Gassmann, Oliver, 2002. "Market versus technology drive in R&D internationalization: four different patterns of managing research and development," Research Policy, Elsevier, vol. 31(4), pages 569-588, May.
    30. Jianjun Yang & Huafang Liu & Shanxing Gao & Yuan Li, 2012. "Technological innovation of firms in China: Past, present, and future," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 819-840, September.
    31. Haakonsson, Stine Jessen & Ujjual, Vandana, 2015. "Internationalisation of R&D: New insights into multinational enterprises’ R&D strategies in emerging markets," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 26(2), pages 101-122.
    32. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    33. Kenneth G Huang & Jiatao Li, 2019. "Adopting knowledge from reverse innovations? Transnational patents and signaling from an emerging economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1078-1102, September.
    34. Anil Nair & Orhun Guldiken & Stav Fainshmidt & Amir Pezeshkan, 2015. "Innovation in India: A review of past research and future directions," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 925-958, December.
    35. John A. Cantwell & Feng Zhang, 2013. "Do Foreign-owned Subsidiaries in China Follow a Distinctive Pattern of Technological Knowledge Sourcing? 外资企业是否在中国遵循特殊的科技能力发展道路?," Management and Organization Review, The International Association for Chinese Management Research, vol. 9(3), pages 489-512, November.
    36. Li, Jiatao & Kozhikode, Rajiv Krishnan, 2009. "Developing new innovation models: Shifts in the innovation landscapes in emerging economies and implications for global R&D management," Journal of International Management, Elsevier, vol. 15(3), pages 328-339, September.
    37. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    38. Cantwell, John A. & Zhang, Feng, 2013. "Do Foreign-owned Subsidiaries in China Follow a Distinctive Pattern of Technological Knowledge Sourcing?," Management and Organization Review, Cambridge University Press, vol. 9(3), pages 489-512, November.
    39. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    40. Intarakumnerd, Patarapong & Chairatana, Pun-arj & Tangchitpiboon, Tipawan, 2002. "National innovation system in less successful developing countries: the case of Thailand," Research Policy, Elsevier, vol. 31(8-9), pages 1445-1457, December.
    41. Lorena M. D’Agostino & Grazia D. Santangelo, 2012. "Do Overseas R&D Laboratories in Emerging Markets Contribute to Home Knowledge Creation?," Management International Review, Springer, vol. 52(2), pages 251-273, April.
    42. Mike W Peng & David Ahlstrom & Shawn M Carraher & Weilei (Stone) Shi, 2017. "An institution-based view of global IPR history," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 893-907, September.
    43. Chaminade, Cristina & Intarakumnerd, Patarapong & Sapprasert, Koson, 2012. "Measuring systemic problems in National Innovation Systems. An application to Thailand," Research Policy, Elsevier, vol. 41(8), pages 1476-1488.
    44. Thomas Clarke & Keun Lee (ed.), 2018. "Innovation in the Asia Pacific," Springer Books, Springer, number 978-981-10-5895-0, September.
    45. Giroud, Axèle, 2007. "MNEs vertical linkages: The experience of Vietnam after Malaysia," International Business Review, Elsevier, vol. 16(2), pages 159-176, April.
    46. Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.
    47. Odagiri, Hiroyuki & Yasuda, Hideto, 1996. "The determinants of overseas R&D by Japanese firms: an empirical study at the industry and company levels," Research Policy, Elsevier, vol. 25(7), pages 1059-1079, October.
    48. Enrico Santarelli & Hien Thu Tran, 2017. "Young innovative companies: Are they high performers in transition economies? Evidence for Vietnam," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1052-1076, October.
    49. Srivardhini K. Jha & Charles Dhanaraj & Rishikesha T. Krishnan, 2018. "From Arbitrage to Global Innovation: Evolution of Multinational R&D in Emerging Markets," Management International Review, Springer, vol. 58(4), pages 633-661, August.
    50. Ahlstrom, David & Levitas, Edward & Hitt, Michael A. & Dacin, M. Tina & Zhu, Hong, 2014. "The three faces of China: Strategic alliance partner selection in three ethnic Chinese economies," Journal of World Business, Elsevier, vol. 49(4), pages 572-585.
    51. Doren Chadee & Revti Raman Sharma & Banjo Roxas, 2017. "Linking and leveraging resources for innovation and growth through collaborative value creation: A study of Indian OSPs," Asia Pacific Journal of Management, Springer, vol. 34(4), pages 777-797, December.
    52. Snehal Awate & Marcus M Larsen & Ram Mudambi, 2015. "Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 63-86, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rammal, Hussain G. & Rose, Elizabeth L. & Ferreira, João J., 2023. "Managing cross-border knowledge transfer for innovation: An introduction to the special issue," International Business Review, Elsevier, vol. 32(2).
    2. Ying Zhang & Puzhen Xiong & Wei Zhou & Lang Sun & Edwin T.C. Cheng, 2023. "Exploring the longitudinal effects of emotional intelligence and cultural intelligence on knowledge management processes," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1555-1578, December.
    3. Hyundo Choi & Luis Alfonso Dau & Elizabeth M. Moore, 2022. "Learning Through Firms’ Overseas Subsidiaries in the United States and China: Linking Host Country Environments into Technological Learning Outcome Types," Management International Review, Springer, vol. 62(6), pages 885-914, December.
    4. Osabutey, Ellis L.C. & Papanastassiou, Marina & Jin, Zhongqi & Navare, Jyoti & Agyapong, Ahmed, 2023. "Revisiting FSAs and CSAs in Sub-Saharan Africa: Evidence from Ghanaian Firms," International Business Review, Elsevier, vol. 32(4).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shasha Zhao & Hui Tan & Marina Papanastassiou & Anne-Wil Harzing, 2020. "The internationalization of innovation towards the South: A historical case study of a global pharmaceutical corporation in China (1993–2017)," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 553-585, June.
    2. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    3. Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.
    4. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    5. Mike W. Peng & Joyce C. Wang & Nishant Kathuria & Jia Shen & Miranda J. Welbourne Eleazar, 2023. "Toward an institution-based paradigm," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 353-382, June.
    6. Peter J. Buckley & Roger Strange & Marcel P. Timmer & Gaaitzen J. de Vries, 2020. "Catching-up in the global factory: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 79-106, June.
    7. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    8. Mike W. Peng & Sergey Lebedev & Cristina O. Vlas & Joyce C. Wang & Jason S. Shay, 2018. "The growth of the firm in (and out of) emerging economies," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 829-857, December.
    9. Cozza, Claudio & Franco, Chiara & Perani, Giulio, 2018. "R&D endowments at home driving R&D internationalisation: Evidence from the Italian business R&D survey," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 277-289.
    10. Lorena D’Agostino, 2015. "The neglected effects of R&D captive offshoring in emerging countries on the creation of knowledge at home," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 61-91, March.
    11. Olga Petricevic & David J Teece, 2019. "The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1487-1512, December.
    12. Khadija Straaten & Niccolò Pisani & Ans Kolk, 2020. "Unraveling the MNE wage premium," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1355-1390, December.
    13. Fatma Halide Kivrak, 2020. "An insight into R&D in emerging countries and prominent concepts within the literature," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 2(1), pages 01-16, January.
    14. Zhenzhen Xie & Jiatao Li, 2018. "Exporting and innovating among emerging market firms: The moderating role of institutional development," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 222-245, February.
    15. Liu, Xiaming & Vahtera, Pekka & Wang, Chengang & Wang, Jue & Wei, Yingqi, 2017. "The delicate balance: Managing technology adoption and creation in multinational affiliates in an emerging economy," International Business Review, Elsevier, vol. 26(3), pages 515-526.
    16. Lopez-Vega, Henry & Tell, Fredrik, 2021. "Technology strategy and MNE subsidiary upgrading in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    17. Dodourova, Mariana & Zhao, Shasha & Harzing, Anne-Wil, 2023. "Ambidexterity in MNC knowledge sourcing in emerging economies: A microfoundational perspective," International Business Review, Elsevier, vol. 32(2).
    18. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    19. Patricia Laurens & Christian Le Bas & Antoine Schoen, 2019. "Worldwide IP coverage of patented inventions in large pharma firms: to what extent do the internationalisation of R&D and firm strategy matter?," Post-Print hal-01725229, HAL.
    20. Boddewyn, Jean J. & Peng, Mike W., 2021. "Reciprocity and informal institutions in international market entry," Journal of World Business, Elsevier, vol. 56(1).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:asiapa:v:38:y:2021:i:3:d:10.1007_s10490-020-09705-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.