Globalization of R&D and China – Empirical Observations and Policy Implications
AbstractAs one of the world’s largest recipients of Foreign Direct Investment (FDI), China is emerging as a key global player in Research and Development (R&D). This rapid increase in R&D investment is mainly attributed to the effort of strengthening the indigenous innovation capacity of domestic actors and, to an increasing extent, to the process of globalization of R&D with multinational enterprises as key driving force. This paper provides a detailed overview of the relative importance of foreign R&D in China based on quantitative mapping in terms of R&D inputs, outputs and local linkages in R&D-related activities, combined with an in-depth description of the nature of foreign R&D activities. Our empirical observation suggests that the growing importance of China in the globalization of R&D is more than a ‘flash-in-the-pan’. On one hand, China is facing new challenges, but at the same time is attempting to seize the “window of opportunity” to compete for knowledge and human resources through structural adjustments and new policy initiatives. On the other hand, multinational enterprises from OECD countries are not only intensifying, but also diversifying their activities in a larger number of R&D intensive sectors in China. In such a rapid and dynamic development, China seems to emerge not only as an important source of R&D but also a key magnet of global R&D operations.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 710.
Length: 36 pages
Date of creation: 09 Aug 2007
Date of revision:
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China; R&D; Globalization; Multinationals;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-18 (All new papers)
- NEP-CNA-2007-08-18 (China)
- NEP-CSE-2007-08-18 (Economics of Strategic Management)
- NEP-DEV-2007-08-18 (Development)
- NEP-INO-2007-08-18 (Innovation)
- NEP-IPR-2007-08-18 (Intellectual Property Rights)
- NEP-KNM-2007-08-18 (Knowledge Management & Knowledge Economy)
- NEP-TRA-2007-08-18 (Transition Economics)
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