The internationalisation of Western firms' R&D in China
by Oliver Gassmann, Marcus Matthias Keupp
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 6, No. 4, 2008

Abstract: During the last ten years, 400 out of the Fortune Top 500 have established at least one R&D unit in China. We investigate into this highly relevant phenomenon that seems to contradict existing theory on international R&D. We propose that there is a missing link in theory, developing this link by introducing the concept of multiplicative capacity in analogy to Cohen and Levinthal's absorptive capacity. We test our propositions by using data from a survey we did on Western firms' R&D activities in China. Results show a good applicability of our concept and its relations to the competitive advantage theory.

Online publication date: Mon, 14-Jul-2008

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