Location of Foreign Research and Development in China

GeoJournal, 2010

16 Pages Posted: 3 Aug 2008 Last revised: 19 Jul 2010

See all articles by Yifei Sun

Yifei Sun

California State University, Northridge - Department of Geography

Date Written: 2010

Abstract

This study examines the location of foreign research and development activities within China, using the 2004 China Economic Census data, published in 2006. The study reveals that the scale of foreign R&D in China is significant and involves a few thousand of foreign enterprises, much broader than what has been reported before. It also finds that foreign R&D activities in China are highly concentrated in a few coastal provinces and cities including Guangdong, Jiangsu, Shanghai, Zhejiang, Fujian and Beijing, though the degree of concentration in Beijing is significantly lower than what was reported before. The results of the analyses demonstrate that proximity to foreign manufacturing investment dictates the location of foreign R&D. Also important is the quality of local technological infrastructure, which is a composite measurement of availability of quality labor and their creativity. However, labor costs and infrastructure do not show consistent or significant impacts.

Keywords: R&D, Globalization, Location, FDI, China

JEL Classification: O18, O31, O34, O38, O53

Suggested Citation

Sun, Yifei, Location of Foreign Research and Development in China (2010). GeoJournal, 2010 , Available at SSRN: https://ssrn.com/abstract=1196382

Yifei Sun (Contact Author)

California State University, Northridge - Department of Geography ( email )

Northridge, CA 91330
United States