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Globalization of R&D and China – Empirical Observations and Policy Implications

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Author Info

  • Lundin, Nannan

    ()
    (Research Institute of Industrial Economics (IFN))

  • Schwaag Serger, Sylvia

    ()
    (ITPS)

Abstract

As 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 Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 710.

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Length: 36 pages
Date of creation: 09 Aug 2007
Date of revision:
Handle: RePEc:hhs:iuiwop:0710

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Keywords: China; R&D; Globalization; Multinationals;

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Cited by:
  1. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "An 'integrated' framework for the comparative analysis of the territorial innovation dynamics of developed and emerging countries," Working Papers 2012-02, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  2. Virginie JACQUIER-ROUX & Christian LE BAS, 2008. "Localisation Des Activités De R&D Des Firmes Multinationales, Modes D’Organisation En Réseaux Et Transfert Transnational Des Connaissances : Un Cadre D’Analyse," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 11-38.
  3. Khan, Haider, 2013. "Industrialization and Development Strategies in the 21st Century: Towards Sustainable Innovation Systems," MPRA Paper 50168, University Library of Munich, Germany.
  4. Abdelillah Hamdouch & Feng He, 2009. "R&D offshoring and clustering dynamics in pharmaceuticals and biotechnology: key features and insights from the Chinese case," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 95-117.

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