OUTWARD INVESTMENT TO CHINA AND LOCAL INNOVATION OF TAIWANESE MANUFACTURING FIRMS

NCUIR > School of Management at National Central University > Department of Economics > journal & Dissertation > Item 987654321/51786

Please use this identifier to cite or link to this item: http://ir.lib.ncu.edu.tw/handle/987654321/51786

Title:	OUTWARD INVESTMENT TO CHINA AND LOCAL INNOVATION OF TAIWANESE MANUFACTURING FIRMS
Authors:	Yang,CH;Wu,YY;Lin,HL
Contributors:	經濟學系
Keywords:	FOREIGN DIRECT-INVESTMENT;RESEARCH-AND-DEVELOPMENT;GROWTH;SIZE
Date:	2010
Issue Date:	2012-03-27 19:06:08 (UTC+8)
Publisher:	國立中央大學
Abstract:	Does outward investment induce more domestic innovation or simply move local innovative efforts to foreign plants? This question is topical and relevant to Taiwan in view of its large share of outward investment concentrated in China and the special political relationship between the two sides of the Taiwan Strait. The purpose of this paper is to examine the effect of outward investment in China on domestic innovative activity in Taiwan. Overall, this study finds that a positive relationship exists between outward investment and innovation in terms of R&D intensity and patents, implying that investing in China is part of a global resource allocation strategy of Taiwanese multinational enterprises to allocate production in China and pay more attention to innovative activity in their domestic plants. Moreover, the deregulation of the policy regarding investing in China in 2001 has induced an upsurge in investment in China, although it does not seem to have brought about an outflow of technologies.
Relation:	JAPANESE ECONOMIC REVIEW
Appears in Collections:	[Department of Economics] journal & Dissertation

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