Locational Determinants of Overseas R&D Investments by Chinese Firms

  • 12 23, 2019
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  • Author:Xielin Liu, Sheng Wu, Ramasamy Jayakumar, Chengyang Luo, Li Zhu

  Abstract

  In this paper, we study the location distribution and determinants for Chinese firms’ overseas Research and Development (R&D) activities, based on a dataset of 1,500 Chinese firms that established overseas R&D subsidiaries during the years 2010-2014. Integrating Dunning’s eclectic paradigm and Uppsala Model, we construct a two-dimensional model, which consists of the determinants from host countries and from the interactions between the host countries and the home country, China. We use a multiple-regression method to analyze the determinants and rationale of the location choice of Chinese firms’ overseas R&D activities. By identifying the determinants of the location of the Chinese firms, we aim to reveal whether and where the location strategy of Chinese firms’ R&D globalization differs from those of the firms in the U.S., Europe and Japan; and to provide a reference for Chinese firms in their strategy-making on R&D globalization.

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