Open AccessRD internationalization, domestic technology alliance, and innovation in emerging market
Author(s) -
Jingjing Li,
Gang Liu,
Zihan Ma
Publication year - 2021
Publication title -
plos one
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.99
H-Index - 332
ISSN - 1932-6203
DOI - 10.1371/journal.pone.0252669
Subject(s) - internationalization , absorptive capacity , competition (biology) , business , emerging markets , alliance , industrial organization , globalization , domestic market , international trade , market economy , economics , finance , ecology , political science , law , biology
Although R&D internationalization plays an important role in enterprises’ globalization, few studies explore the mechanism of R&D internationalization and emerging market companies’ innovation, or the relationship between R&D internationalization, domestic technology alliances and absorptive capacity. How does the R&D internationalization of emerging market enterprises affect the innovation of those enterprises? Under fierce market competition, do absorption capacity and domestic technology alliances have a significant impact on enterprise innovation? From the perspective of the knowledge-based view, this paper studies 185 enterprises undergoing R&D internationalization in China from 2012 to 2017, using high-dimensional Poisson fixed effects model, we use instrumental (HDFE IV) estimation to explain the impact of R&D internationalization on the innovation of the parent company and the mechanism behind it. The study finds that R&D internationalization positively promotes the parent company’s innovation, and domestic technology alliances and absorptive capacity play a partial mediator role in R&D internationalization. In the face of fierce market competition, domestic technical alliances play a significant role in promoting enterprise innovation, while absorptive capacity plays a negative role in promoting enterprise innovation with the moderating effect of market competition.