The Location Patterns Of MNCs' Overseas R&D In Developing Countries

MNCs used to conduct little research and development(R&D) outside their home base, especially in developing countries .At the end of 20th century , the rapid increase of MNCs' R&D investment in developing countries has been a new trend of the globalization of industrial R&D. It brings challenge to the traditional theories of MNCs and location theory , and has become an important subject of inquiry for economic and business theory.Main stream theories have limited possible locations of R&D facilities of MNCs in development countries, where market demands are most demanding and R&D infrastructures are readily available .It has been assumed that MNCs R&D facilities in developing countries are only marginally important to their parent companies' long-term fortune, if such facilities exist at all .It has been assumed that such a point of view is too simplistic in an age where emerging technologies are opening potential "windows of opportunities "for lagging countries .Certain developing countries are becoming increasingly attractive locations for R&D facilities from MNCs .and they are involved not only in development for foreign domestic markets ,but also in original research for the global markets.How to explain this phenomenon? What are the characteristics of the R&D investment from MNCs in developing world? How to explain the motivations of MNCs' investing in developing world? Are there any laws and patterns determining the location of MNCs' overseas R&D? This thesis reports a comprehensive theoretical and empirical study of the location of MNCs' R&D investment in developing countries.This thesis explores the developing course and geographical distributing characteristics of MNCs' R&D investment in developing countries .The course that MNCs' R&D investment in developing countries experienced can be divided into three phrases: slow growing, undulate rising, and rapid developing. The characteristics of MNCs' R&D in developing countries can be concluded as follow: Firstly, Asia and Latin America are becoming the poles attracting the lion's share of MNCs R&D in developing world. Secondly, wide industry differences appear in the geographical distribution: the manufacturing of computer and electronics are concentrated in Asia .while the manufacturing of chemical and transportation equipment are more dispersed Thirdly .the expatriate R&D units which engaged in research are concentrated in only a few regions in a handful countries .while those in development are moredispersed.An index system is constructed to evaluate the location conditions of MNCs' R&D investment in 24 developing countries The R&D can be divided into the knowledge-producing phrase and the knowledge-applying one .which have different demands on location The former's location factors include R&D resource .infrastructure .and policies in host country, while the latter's market size ,FDI and export .According to the factors,24 indices are selected to evaluate the location conditions .Based on the evaluation ,all developing countries that have been evaluated are divided into the knowledge-applying location and the knowledge-producing one.Singapore is a representative case of knowledge-applying location .An empirical study is conducted to examine the decisive factors for MNCs conducting R&D investment in Singapore. Using the data in the period 1990-2000,statics analysis is employed to examine the factors which affect MNCs conducting local R&D investment The regression findings show that the main factors are the nature and the scale of MNCs' local manufacture. Furthermore .governmental financial support for R&D and the excellent infrastructure are helpful in attracting more MNCs' R&D.Taiwan is a representative case of knowledge-producing location, and an empirical study is conducted to examine the decisive factors for MNCs conducting R&D investment in Taiwan The finding is that the main factors include the accumulated production experiences and management skills .high-quality and relatively low-cost R&D personel, Taiwan's indigenous technical capabili...