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The Upgrading of Multinational Regional Innovation Networks in China

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  • Yun-Chung Chen

Abstract

Theories of globalization of innovation assume a hierarchical structure of location in the global division of innovation, with advanced innovative activities in the advanced economies and routine ones in the developing economies. This study attempts to explain why multinational corporations (MNCs) have localized a wide spectrum of innovative activities to China since 1995, which range from process innovation and product innovation to basic research. By comparing the dynamic transformation of two MNCs' regional innovation networks (RIN) in China -- namely Motorola and Microsoft -- this essay argues that the innovation upgrading process can be better understood through examining the interaction between the MNC subsidiary innovation centres and the local institutions.

Suggested Citation

  • Yun-Chung Chen, 2007. "The Upgrading of Multinational Regional Innovation Networks in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 13(3), pages 373-403, July.
    • Handle: RePEc:taf:apbizr:v:13:y:2007:i:3:p:373-403
    DOI: 10.1080/13602380701291941
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    References listed on IDEAS

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    1. Rajneesh Narula & Antonello Zanfei, 2003. "Globalisation of Innovation The Role of Multinational Enterprises," DRUID Working Papers 03-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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    Cited by:

    1. Giorgio Prodi & Federico Frattini & Francesco Nicolli, 2018. "The diffusion and embeddedness of innovative activities in China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(1), pages 71-106, April.
    2. Xuwen Cao & Fumitaka Furuoka & Rajah Rasiah, 2023. "Knowledge Mapping of Industrial Upgrading Research: A Visual Analysis Using CiteSpace," Sustainability, MDPI, vol. 15(24), pages 1-21, December.
    3. Giorgio Prodi & Federico Frattini & Francesco Nicolli, 2016. "Regional Innovation Systems in China: A long-term perspective based on patent data at the prefectural level," SEEDS Working Papers 0316, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2016.
    4. Amelia U. Santos-Paulino & Mariagrazia Squicciarini & Peilei Fan, 2008. "R&D (Re)location: A Bird's Eye (Re)view," WIDER Working Paper Series RP2008-100, World Institute for Development Economic Research (UNU-WIDER).
    5. Li, Xiaoying & Wang, Jue & Liu, Xiaming, 2013. "Can locally-recruited R&D personnel significantly contribute to multinational subsidiary innovation in an emerging economy?," International Business Review, Elsevier, vol. 22(4), pages 639-651.
    6. Inge Ivarsson & Claes Göran Alvstam, 2017. "New technology development by Swedish MNEs in emerging markets: the role of co-location of R&D and production," Asian Business & Management, Palgrave Macmillan, vol. 16(1), pages 92-116, April.
    7. Hugues Jeannerat & Leila Kebir, 2012. "Mobility of Knowledge. Knowledge resources and markets: What territorial economic systems ?," GRET Publications and Working Papers 02-12, GRET Group of Research in Territorial Economy, University of Neuchâtel.
    8. Nepelski, Daniel & De Prato, Giuditta, 2011. "Internationalisation of ICT R&D in Asia vis a vis the world regions," MPRA Paper 39281, University Library of Munich, Germany.
    9. Motohashi, Kazuyuki, 2012. "Growing R&D in Emerging Economies: Implications for International Management and Competitiveness," MPRA Paper 50093, University Library of Munich, Germany.
    10. Amelia Santos-Paulino, 2011. "Trade specialization, export productivity and growth in Brazil, China, India, South Africa, and a cross section of countries," Economic Change and Restructuring, Springer, vol. 44(1), pages 75-97, April.
    11. Christian Livi & Hugues Jeannerat & Olivier Crevoisier, 2013. "Mobility of Knowledge. The Photovoltaic Industry in Western Switzerland : The Emergence of a Multi-Local Valuation Milieu," GRET Publications and Working Papers 04-13, GRET Group of Research in Territorial Economy, University of Neuchâtel.
    12. Heindl, Anna-Barbara & Liefner, Ingo, 2019. "The Analytic Hierarchy Process as a methodological contribution to improve regional innovation system research: Explored through comparative research in China," Technology in Society, Elsevier, vol. 59(C).
    13. Kazuyuki Motohashi, 2010. "R&D Activities of Manufacturing Multinationals in China: Structure, Motivations and Regional Differences," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(6), pages 56-72, November.

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