The multidimensional impact of R&D internationalization on disruptive innovation: Mechanisms and evidence

As global industrial and value chains are reshaped, disruptive innovation is becoming the focus of strategic initiatives in many countries. This paper highlights the role of R&D internationalization in enabling disruptive innovation. Panel models based on data from Chinese listed firms between 2008 and 2023 confirm that both the depth and breadth of R&D internationalization promote disruptive innovation. International collaboration and firms' risk-taking capacity emerge as key channels through which R&D internationalization translates into disruptive innovation. Digital transformation and financial openness partially weaken the positive impact of R&D internationalization by providing alternative channels to frontier knowledge, while strong indigenous innovation capabilities constrain marginal benefits through path dependence. U.S. entity sanctions amplify the positive impact of R&D internationalization by inducing resource reallocation toward institutionally compatible regions. Heterogeneous effects show that firms with weaker innovation foundations display stronger catch-up effects, particularly among non-high-tech firms, SOEs, and those led by non-international CEOs. Firms in non-eastern regions of China do not significantly benefit from R&D internationalization. These findings advance understanding of how internationalization strategies interact with firm capabilities and geopolitical environments to shape disruptive innovation.