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Regional innovation systems and the global location of innovation activities: Lessons from China

  • Yun-Chung, Chen

    ()

    (Hong Kong University of Science and Technology)

  • Vang, Jan

    ()

    (CIRCLE and Copenhagen Institute of Technology, Aalborg University)

  • Chaminade, Cristina

    ()

    (CIRCLE, Lund University)

The global location of R&D centres by MNCs is a rather new phenomenon; especially when it comes to establishing R&D centres in developing countries. The existing and rather limited literature on globalization of innovation provides four possible explanations of why multinationals locate R&D departments in developing countries: reduce research costs, access large markets, tap into a large pool of qualified human resources or benefit from knowledge spillovers available in the local/regional system of innovation. The empirical research presented in this paper reveals that none of these arguments can fully explain the increasing location of R&D departments in China. The in-depth study of MNCs R&D centres in Beijing and Shanghai, China, reveals that specific aspects of market, technological and political uncertainty provide more adequate to explain the increasing presence of R&D labs from MNCs in developing countries such as China and thus calls for an integration in the regional innovation systems framework.

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Paper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series Papers in Innovation Studies with number 2008/18.

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Length: 21 pages
Date of creation: 01 Dec 2008
Date of revision:
Handle: RePEc:hhs:lucirc:2008_018
Contact details of provider: Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Phone: +46 (0) 46 222 74 68
Web page: http://www.circle.lu.se/

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