Factors motivating MNCs to set up local R&D facilities: the case of Singapore Online publication date: Sun, 13-Jul-2003
by K.T. Yeo
International Journal of Technology Transfer and Commercialisation (IJTTC), Vol. 2, No. 2, 2003
Abstract: In order to attract Multi National Corporations (MNCs) to invest, particularly in R&D, the host country must be able to replicate the base conditions and characteristics of the home countries of the MNCs. This is more so when the host country is no longer offering any factor cost advantage. The objective of this paper is to present some survey findings, in the case of Singapore, on the motivating factors that attracted MNCs to set up R&D facilities in an overseas base, the challenges and problems faced in conducting R&D locally. The survey results may be peculiar to Singapore, but there are still useful lessons to be learned for countries which are interested in attracting MNCs to set up higher order operations there.
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