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Transnational R&D Centers and National Innovation Systems in Host Countries: Empirical Evidence from China

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  • Xinjian Cui
  • Bing Chen
  • Yan Chang

Abstract

With globalization of research and development (R&D), an increasing number of transnational R&D centers have been established in developing countries, including China. However, how these transnational R&D centers affect the host country's national innovation system (NIS) is still not clear. Building on the literature, this article puts forward hypotheses about transnational R&D centers' embedment process, which is gradually adaptive, cooperative, and dynamic. It then tests the hypotheses by means of a unique survey on transnational R&D centers in China. The results indicate that the embedding of transnational R&D centers has positive effects on the host country's NIS. Relational embedding, structural embedding, and virtual embedding have different influences with different lag periods of effects; the first two modes are the most influential. Transnational R&D centers in China still remain at the early stage of embedding. This article suggests that the Chinese government should take several measures to maximize the positive influences of transnational R&D centers on China's NIS.

Suggested Citation

  • Xinjian Cui & Bing Chen & Yan Chang, 2017. "Transnational R&D Centers and National Innovation Systems in Host Countries: Empirical Evidence from China," Canadian Public Policy, University of Toronto Press, vol. 43(s2), pages 107-121, April.
  • Handle: RePEc:cpp:issued:v:43:y:2017:i:s2:p:107-121
    DOI: 10.3138/cpp.2016-075
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    Cited by:

    1. Tina T He & Wilson XB Li, 2021. "Revisiting tourism’s additional impact on income," Tourism Economics, , vol. 27(1), pages 149-167, February.
    2. Bernard Arogyaswamy & John Hunter, 2019. "The Impact of Technology and Globalization on Employment and Equity: An Organizing Framework for Action," International Journal of Global Sustainability, Macrothink Institute, vol. 3(1), pages 49-72, December.

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