Localization and Overseas R&D Activity: The Case of Taiwanese Multinational Enterprises in China

نویسندگان

  • Chih-Hai YANG
  • Kazunobu HAYAKAWA
چکیده

This study investigates the determinants of overseas research and development (R&D) by Taiwanese multinational enterprises (MNEs) in China. Specifically, we examine the influences of various aspects of localization on affiliates’ R&D intensity. Using surveyed MNE data during 2007-2009, and employing the Heckman two-step approach, the empirical estimations find that MNEs with a larger firm size, more R&D expenditure and a higher outward FDI intensity tend to undertake R&D in China. Moreover, host regions’ characteristics, particularly market size and R&D resource, matter for attracting MNEs to do R&D locally. Crucially, an affiliates’ R&D intensity is related to the degree of localization. The degree of market localization and localization of the R&D network has a positive association with an affiliates’ R&D intensity, while localization of the production network does not result in a positive R&D spillover effect in China.

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تاریخ انتشار 2013