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FDI and Intellectual Property Protection in China: A Game Theory Perspective

Author

Listed:
  • Dong-Mei Lee

    (Shanxi University, P. R. China)

  • Lee-Yuan Wang

    (Shanxi University, P. R. China)

  • Yue Wang

    (Shanxi University, P. R. China)

  • Dai-Jiao Zhou

    (Shanxi University, P. R. China)

Abstract

The large-scale spread of R&D activities by MNCs to investment host countries is a new phenomenon of globalization in the past ten years. For the host country, especially a developing host country such as China, how to promote the spillover effect of TNC research and development institutions on the host country and curb its crowding-out effect is a new topic. This paper analyzes the R&D strategy adopted by transnational corporations in China. We explain the relationship between the strength of intellectual property protection in China and the choice of the organization form of R&D activities by transnational corporations with game theory and proves the relationship between the two with data. Finally, policy implications are proposed for the trend of sole proprietorship of R&D activities of transnational corporations.

Suggested Citation

  • Dong-Mei Lee & Lee-Yuan Wang & Yue Wang & Dai-Jiao Zhou, 2021. "FDI and Intellectual Property Protection in China: A Game Theory Perspective," European Journal of Business and Management Research, European Open Science, vol. 6(6), pages 133-138, November.
    • Handle: RePEc:epw:ejbmr0:v:6:y:2021:i:6:id:51162
    DOI: 10.24018/ejbmr.2021.6.6.1162
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