FOREIGN CORPORATE R&D IN CHINAA: Strategic Perspective

This chapter represents an effort to offer a broad survey of foreign corporate R&D in China amid globalization. It starts with a review of the literature on R&D globalization and especially that on R&D globalization in China, covering both the relevant English and Chinese literature. This is followed by an assessment of China’s evolving policies toward foreign R&D in China. It then takes stock of and analysis foreign R&D in China, discusses the strategic intent of those MNCs conducting R&D in China, and evaluates the extent to which MNCs have contributed to China through their R&D activities. Next, several examples are presented to highlight how some of the leading MNCs have evolved their R&D activities in China. It also includes some discussion of the overseas R&D efforts of Chinese firms. Finally, the chapter ends with a review of recent changes in the flows of R&D investment in China as well as a discussion of the key challenges that MNCs have encountered establishing and operating their global R&D centers.