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Multinational R&D in China: From home-country-based to host-country-based

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<mark>Journal publication date</mark>30/06/2012
<mark>Journal</mark>Innovation: Management, Policy and Practice
Issue number2
Volume14
Number of pages11
Pages (from-to)192-202
Publication StatusPublished
<mark>Original language</mark>English

Abstract

Current research on multinational R&D assumes that main R&D is based in the home country and views overseas R&D as additional to the home base. However, case studies in China have found that the base itself is also internationalized. Besides home-based-augmenting, home-based-exploiting, and home-based-replacing discussed in the literature, we have identified new types of host-based overseas R&D. Two of these are the host-based technology advancer, which focuses on original component innovation, and the host-based system owner, which focuses on system innovation. Both respond to local market opportunities. In addition, multinationals establish host-based local integrators to coordinate their R&D centers under different firm divisions. These findings suggest four topics for future research.