Managing Foreign R&D in the P. R. of China

Production-based FDI was the main driver of the China's economical growth and modernisation during its liberalization. However, foreign firms investing in China were only minimally engaged in R&D activity. With the increasing development of higher value-added activities, an increasing number of MNCs have revised their attitudes towards local R&D in recent years. The main reason was that many MNCs have recognized the strategic importance of installing R&D in China. Although R&D internationalization has absorbed the attention of scholars for more than a decade, there is little knowledge on the R&D internationalization of a transitioning economy such as China. This research project endeavours to provide an understanding for this recent phenomenon by first investigating motivations, barriers and patterns of MNC's R&D activities in China. Also, since China as an emerging market is characterised by its high levels of uncertainty and fast moving markets, the R&D units' capabilities to achieve competitive advantage in this dynamic environment are essential to the MNC's successes. Thus, the second aim of this research is to explore the Dynamic Capabilities (DC) of foreign R&D activities in China and to contribute to the body of knowledge linking both academic disciplines of R&D and strategic management. This research is to provide new insights for the strategic rationale of R&D operations in emerging markets for academia and practitioners alike.

Aufenthaltsort: China Europe International Business School, China
Referent: Prof. Dr. Li-Choy Chong (ARC-HSG)