Template-type: ReDIF-Paper 1.0
Author-Name: Huang, Can
Author-Email: can.huang@merit.unimaas.nl
Author-Workplace-Name: UNU-MERIT
Author-Name: Qu, Zhe 
Author-Email: Zhe.Qu@mgt.gatech.edu  
Author-Workplace-Name: College of Management, Georgia Institute of Technology 
Author-Name: Zhang, Mingqian
Author-Email: zhangmq@mail.hbu.cn
Author-Workplace-Name: School of Economics, Hebei University of China
Author-Name: Zhao, Yanyun
Author-Email: cas-kriu@ruc.edu.cn  
Author-Workplace-Name: Center for Applied Statistic and School of Statistics,
	 Renmin University of China
Title: R&D offshoring and technology learning in emerging economies: Firm-level 
	 evidence from the ICT industry 
Abstract: This paper studies the impact of the R&D offshoring of multinational 
	 enterprises on the firms in host emerging economies. We develop a 
	 two-stage non-cooperative game to analyze the strategic interaction 
	 between multinational and host country enterprises engaged in R&D 
	 investment. An empirical analysis of 12,309 manufacturing firms in the 
	 ICT industry in China shows that R&D offshoring has a positive effect on 
	 the intensity of the R&D of host country firms. However, the magnitude 
	 of the impact depends on both the technological and geographical 
	 distance between the multinational and host country firms. The policy 
	 implications of these findings are that the governments of host country 
	 should be cautious about allowing advanced multinational R&D investment 
	 in under-developed sectors, but they should encourage such investment in 
	 developed sectors; and that local governments should be involved in R&D 
	 policy making because the positive impact of multinational R&D 
	 offshoring diminishes as the geographical distance between the 
	 multinational and host country firms increases.
Classification-JEL: F23, L23, O32, O33
Keywords: Research and Development, Offshoring, Spillovers,
	 Emerging Economies
Series: UNU-MERIT Working Papers
Creation-Date: 2007
Number: 023
File-URL: http://www.merit.unu.edu/publications/wppdf/2007/wp2007-023.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2007023