On R&D Internationalization Of Firms From Developing Countries

R&D Internationalization of MNCs means that MNCs carry out their R&D activities in locations outside home countries, utilizing technological resource of other countries. In recent years, R&D internationalization has become the main part of the globalization strategies of MNCs from developed countries.There are many theories on R&D internationalization of MNCs. However, they mainly focus on MNCs from Developed Countries. Firms in our country are quite different from MNCs from Developed Countries; the existed theories are limited in explaining R&D internationalization of Chinese firms.As motivations for R&D internationalization of firms are dynamic with the development of firms, this paper tries to link the motivation with corporate life cycle. Firms have to deal with different problems at different stage of development. As one of the main solutions to the problem, decisions on R&D internationalization are critical. To be consistent with strategies of firms at different stages, motivations for R&D internationalization varies. This paper tries to analyze motivation for R&D internationalization, using Corporate Life Cycle and existed theories. We hope to find appropriate theories explaining R&D internationalization activities of firms of developing countries, especially firms of China.As the leader of telecom equipment manufacturing industry, Huawei is successful in its R&D internationalization. We take Huawei as an example to analyze the motivations for R&D internationalization of firms at different stages of development.