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Research PolicyVolume 42, Issue 2, March 2013, Pages 502-516

R&D offshoring, technology learning and R&D efforts of host country firms in emerging economies(Article)

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  • aSchool of Management, Fudan University, 670 Guoshun Road, Shanghai, China
  • bUnited Nations University, MERIT, Maastricht University, Keizer Karelplein 19, 6211 TC Maastricht, Netherlands
  • cCollege of International Finance and Commerce, Shanghai International Studies University, No.550 Dalian Road (W), Shanghai, China
  • dCenter for Applied Statistic and School of Statistics, Renmin University of China, No.59 Zhongguancun Street, Beijing, China

Abstract

This paper studies how ease of learning by host country firms in emerging economies shapes decisions regarding their R&D efforts in response to R&D offshoring by multinational enterprises (MNEs). We develop a two-stage game-theoretic model to analyze strategic interaction between the R&D decisions of the foreign affiliates of MNEs and the host country firms. An empirical analysis of 12,309 manufacturing firms in the Information and Communications Technologies sector in China supports the key contributions of the model. That is, R&D offshoring has a positive effect on the R&D efforts of host country firms in emerging economies. However, the positive effect diminishes as the geographical distance between the foreign affiliates and the host country firms increases. © 2012 Elsevier B.V.

Author keywords

Emerging economiesOffshoringR&DSpillover

Indexed keywords

Engineering controlled terms:Game theory
Engineering uncontrolled termsEmerging economiesEmpirical analysisForeign affiliatesGame-theoretic modelHost countriesInformation and communications technologyManufacturing firmsMultinational enterpriseOff-shoringSpilloverStrategic interactionsTechnology learning
Engineering main heading:Industry

Funding details

Funding sponsor Funding number Acronym
2012SHKXQN007
National Natural Science Foundation of China71002012NSFC

  • 1

    Zhe Qu acknowledges the financial support from the Alan & Mildred Peterson Foundation , the National Natural Science Foundation of China ( 71002012 ), the Shanghai Pujiang Program , and the 985 Social Science Program ( 2012SHKXQN007 ).

  • ISSN: 00487333
  • CODEN: REPYB
  • Source Type: Journal
  • Original language: English
  • DOI: 10.1016/j.respol.2012.07.001
  • Document Type: Article
  • Publisher: Elsevier B.V.

  Huang, C.; United Nations University, MERIT, Maastricht University, Keizer Karelplein 19, Netherlands;
© Copyright 2017 Elsevier B.V., All rights reserved.

Cited by 6 documents

Pisani, N. , Ricart, J.E.
Offshoring Innovation to Emerging Countries: The Effects of IP Protection and Cultural Differences on Firms’ Decision to Augment Versus Exploit Home-Base-Knowledge
(2018) Management International Review
Lee, H. , Kang, P.
Identifying core topics in technology and innovation management studies: a topic model approach
(2018) Journal of Technology Transfer
Sun, P. , Qu, Z. , Liao, Z.
How and when do subnational institutions matter for R&D investment? Evidence from the Chinese pharmaceutical sector
(2018) IEEE Transactions on Engineering Management
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