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R&D transfer of MNCs: the perspective of China

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  • Qiong He
  • Jingyuan Zhao

Abstract

This paper studies the transfer characteristics of multinational corporations' (MNCs) international R&D. To use local R&D resources, adapt to the complexity of market demands, reduce the costs and risks of new product development process, MNCs gradually transfer home country R&D to international R&D. From the geographical distribution, global R&D shows from the triangular to scattering the developing countries, particularly the newly industrialised countries are becoming emerging markets of developed countries' overseas R&D investment. The location factors of MNCs' R&D are mainly impacted by market size, foreign direct investment (FDI), intellectual property rights protection and human capital, which are the important driving factors for MNCs' R&D transfer to China. MNCs establish overseas R&D institutions by means of new built R&D institution, acquisitions and joint ventures. The study results of paper have a great practical value and can provide a reference for developing countries in terms of attracting MNCs' R&D investment, having access to advanced technologies and learning new models of management.

Suggested Citation

  • Qiong He & Jingyuan Zhao, 2011. "R&D transfer of MNCs: the perspective of China," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 8(2), pages 155-166.
    • Handle: RePEc:ids:ijlica:v:8:y:2011:i:2:p:155-166
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    Cited by:

    1. Agarwal, Samanvaya & Kamath, Saipriya & Subramanian, Krishnamurthy & Tantri, Prasanna, 2022. "Board conduct in banks," Journal of Banking & Finance, Elsevier, vol. 138(C).

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