R&D transfer of MNCs: the perspective of China
by Qiong He, Jingyuan Zhao
International Journal of Learning and Intellectual Capital (IJLIC), Vol. 8, No. 2, 2011

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.

Online publication date: Thu, 27-Nov-2014

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