Premium
R&D Activities of Manufacturing Multinationals in China: Structure, Motivations and Regional Differences
Author(s) -
Motohashi Kazuyuki
Publication year - 2010
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2010.01220.x
Subject(s) - beijing , china , production (economics) , business , economic geography , international trade , industrial organization , scale (ratio) , economics , political science , geography , microeconomics , cartography , law
This paper investigates the R&D motivations of various multinationals operating in China, drawing on a large‐scale, firm‐level dataset of official Chinese statistics on science and technology activities. The present study shows that R&D efforts in China have intensified for both foreign‐owned and domestic firms, but less so for foreign‐owned firms, perhaps because foreign‐owned firms tend to operate on a foundation of technological capabilities developed within their home countries. Statistical analysis confirms that the major motivations for foreign R&D in China are production‐driven, not market‐driven or technology‐driven. Nevertheless, one sees significant variations in foreign R&D strategies from region to region. Guangdong is characterized by production‐driven R&D. In Beijing, R&D strategies tend to take a technology‐driven approach, drawing on the clusters of scientific institutions. In Shanghai, the R&D efforts of multinationals tend to focus on support for market‐driven R&D.