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Japanese Corporate Strategies On Location Choices Of R&D Activities In China: Identifying The Role Of Knowledge Spillovers

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Listed:
  • SIMON LIU

    (Department of Advanced Interdisciplinary Studies, The University of Tokyo, 4-6-1 Komaba, Meguro-ku, Tokyo 153-8904, Japan)

  • NAOHIRO SHICHIJO

    (Waseda Institute for Advanced Study, Waseda University, Nishi-Waseda, Shinjuku-ku, Tokyo 169-8050, Japan)

  • YASUNORI BABA

    (Research Center for Advanced Science and Technology, The University of Tokyo, 4-6-1 Komaba, Meguro-ku Tokyo 153-8904, Japan)

Abstract

The objective of this research is to analyze the geographical distribution of the research and development (R&D) collaboration of Japanese multinational enterprises (MNEs) in China. We analyze location strategies of overseas R&D activities on a regional instead of a national level. We first discuss the linkage of foreign direct investment (FDI) and ensue knowledge spillovers from MNEs to a host country, and further analyze how the knowledge spillovers influence MNEs in making their decisions on location choices in China. Using conditional logit estimation from U.S. patent data, we find that Japanese MNEs are in proximity to the R&D-intensive locations and to the clustering of Japanese MNEs, but have a tendency to keep a distance from R&D-competitive locations that would be endangered by outward knowledge spillovers. In addition, small and medium MNEs are influenced more by location factors, such as R&D and FDI, than large MNEs. So are capital-intensive MNEs than non-capital-intensive MNEs.

Suggested Citation

  • Simon Liu & Naohiro Shichijo & Yasunori Baba, 2010. "Japanese Corporate Strategies On Location Choices Of R&D Activities In China: Identifying The Role Of Knowledge Spillovers," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 167-191.
    • Handle: RePEc:wsi:jecxxx:v:18:y:2010:i:02:n:s0218495810000549
    DOI: 10.1142/S0218495810000549
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    1. Slavo Radosevic, 1999. "International Technology Transfer and Catch-Up in Economic Development," Books, Edward Elgar Publishing, number 1386.
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