Chinese Foreign Direct Investment in R&D in Europe

A New Model of R&D Internationalization?

Alberto Di Minin, Jieyin Zhang, Peter Gammeltoft

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    Along with their mounting economic might, emerging economies are becoming the object of ever closer analytical attention. Yet the phenomenon of international research and development (R&D) from multinationals headquartered there still remains neglected. The current study analyzes Chinese companies’ investment in R&D in Europe, focusing on three different aspects: technology exploration vs. technology exploitation as investment motive; locational strategies for R&D investments; and the dynamics of motives of overseas R&D units. The analysis proceeds to draw out differences between the R&D internationalization process of multinationals from developed economies and those from emerging economies. Evidence of Chinese R&D internationalization is provided through analyses of five cases of international R&D units set up by Chinese companies in Europe: ZTE Corporation, JAC Motors, Chang’an Motors, Hisense Group, and Hisun Group. Based on the analyses we find that the Chinese R&D units represent important differences from the conventional R&D internationalization process of developed-country multinationals. These differences come about when R&D internationalization is driven predominantly by learning rather than technological innovation, as the extant literature tends to assume. Chinese R&D units appear to evolve often from a strategy of pure technology exploration, over fusion of foreign technologies with R&D activities back home, into one of technology exploitation in foreign locations.
    Original languageEnglish
    JournalEuropean Management Journal
    Volume30
    Issue number3
    Pages (from-to)189-203
    ISSN0263-2373
    DOIs
    Publication statusPublished - 2012

    Cite this

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    title = "Chinese Foreign Direct Investment in R&D in Europe: A New Model of R&D Internationalization?",
    abstract = "Along with their mounting economic might, emerging economies are becoming the object of ever closer analytical attention. Yet the phenomenon of international research and development (R&D) from multinationals headquartered there still remains neglected. The current study analyzes Chinese companies’ investment in R&D in Europe, focusing on three different aspects: technology exploration vs. technology exploitation as investment motive; locational strategies for R&D investments; and the dynamics of motives of overseas R&D units. The analysis proceeds to draw out differences between the R&D internationalization process of multinationals from developed economies and those from emerging economies. Evidence of Chinese R&D internationalization is provided through analyses of five cases of international R&D units set up by Chinese companies in Europe: ZTE Corporation, JAC Motors, Chang’an Motors, Hisense Group, and Hisun Group. Based on the analyses we find that the Chinese R&D units represent important differences from the conventional R&D internationalization process of developed-country multinationals. These differences come about when R&D internationalization is driven predominantly by learning rather than technological innovation, as the extant literature tends to assume. Chinese R&D units appear to evolve often from a strategy of pure technology exploration, over fusion of foreign technologies with R&D activities back home, into one of technology exploitation in foreign locations.",
    keywords = "R&D internationalization, Europe, China, Emerging Multinationals, Investment motives, Outward foreign direct investment",
    author = "{Di Minin}, Alberto and Jieyin Zhang and Peter Gammeltoft",
    year = "2012",
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    language = "English",
    volume = "30",
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    }

    Chinese Foreign Direct Investment in R&D in Europe : A New Model of R&D Internationalization? / Di Minin, Alberto; Zhang, Jieyin; Gammeltoft, Peter.

    In: European Management Journal, Vol. 30, No. 3, 2012, p. 189-203.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Chinese Foreign Direct Investment in R&D in Europe

    T2 - A New Model of R&D Internationalization?

    AU - Di Minin, Alberto

    AU - Zhang, Jieyin

    AU - Gammeltoft, Peter

    PY - 2012

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    N2 - Along with their mounting economic might, emerging economies are becoming the object of ever closer analytical attention. Yet the phenomenon of international research and development (R&D) from multinationals headquartered there still remains neglected. The current study analyzes Chinese companies’ investment in R&D in Europe, focusing on three different aspects: technology exploration vs. technology exploitation as investment motive; locational strategies for R&D investments; and the dynamics of motives of overseas R&D units. The analysis proceeds to draw out differences between the R&D internationalization process of multinationals from developed economies and those from emerging economies. Evidence of Chinese R&D internationalization is provided through analyses of five cases of international R&D units set up by Chinese companies in Europe: ZTE Corporation, JAC Motors, Chang’an Motors, Hisense Group, and Hisun Group. Based on the analyses we find that the Chinese R&D units represent important differences from the conventional R&D internationalization process of developed-country multinationals. These differences come about when R&D internationalization is driven predominantly by learning rather than technological innovation, as the extant literature tends to assume. Chinese R&D units appear to evolve often from a strategy of pure technology exploration, over fusion of foreign technologies with R&D activities back home, into one of technology exploitation in foreign locations.

    AB - Along with their mounting economic might, emerging economies are becoming the object of ever closer analytical attention. Yet the phenomenon of international research and development (R&D) from multinationals headquartered there still remains neglected. The current study analyzes Chinese companies’ investment in R&D in Europe, focusing on three different aspects: technology exploration vs. technology exploitation as investment motive; locational strategies for R&D investments; and the dynamics of motives of overseas R&D units. The analysis proceeds to draw out differences between the R&D internationalization process of multinationals from developed economies and those from emerging economies. Evidence of Chinese R&D internationalization is provided through analyses of five cases of international R&D units set up by Chinese companies in Europe: ZTE Corporation, JAC Motors, Chang’an Motors, Hisense Group, and Hisun Group. Based on the analyses we find that the Chinese R&D units represent important differences from the conventional R&D internationalization process of developed-country multinationals. These differences come about when R&D internationalization is driven predominantly by learning rather than technological innovation, as the extant literature tends to assume. Chinese R&D units appear to evolve often from a strategy of pure technology exploration, over fusion of foreign technologies with R&D activities back home, into one of technology exploitation in foreign locations.

    KW - R&D internationalization

    KW - Europe

    KW - China

    KW - Emerging Multinationals

    KW - Investment motives

    KW - Outward foreign direct investment

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    DO - 10.1016/j.emj.2012.03.004

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