Title

MNCs' Offshore R & D mandates and host countries' locational advantages : a comparsion between Taiwan and China

Document Type

Journal article

Source Publication

China Information

Publication Date

2009

Volume

23

Issue

1

First Page

159

Last Page

187

Keywords

R&D internationalization, R&D mandate, locational advantages, MNC, leapfrogging

Abstract

Offshore R & D by multinational corporations (MNCs) has increasingly involved the developing world in East Asia, initially Taiwan and Korea but more recently China and India. However, the R & D mandates of foreign R & D facilities in this region tend not to follow the paths of evolutionary models. To explain this phenomenon, this article presents a conceptual framework, essentially based on Dunning's eclectic paradigm, with a strong flavor of the evolutionary approach to technology, but which, in some cases, also allows for leapfrogging competition. In terms of empirical work, the article also explores the relationship between MNCs' overseas R & D mandates and the locational advantage of the host country by conducting case studies on flagship MNCs' R & D facilities in the information technology sector on both sides of the Taiwan Strait. The results show some interesting contrasts across the Taiwan Strait that run counter to the evolutionary perspective. There are grounds to suggest that such contrasts have much to do with the locational advantages Taiwan and China each possess. Further implications are drawn to enrich the current understanding of R & D internationalization.

Print ISSN

0920203X

E-ISSN

1741590X

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Copyright © 2015 by SAGE Publications.

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Recommended Citation

Chen, S.-H., Chen, Y.-C., & Wen, P.-C. (2009). MNCs' Offshore R & D mandates and host countries' locational advantages: A comparsion between Taiwan and China. China Information, 23(1), 159-187. doi: 10.1177/0920203X08100951