TY  - JOUR
AU  - Liu, Meng-Chun
AU  - Chen, Shin-Horng
TI  - International R&D Deployment and Locational Advantage: A Case Study of Taiwan
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10169
PY  - 2003
Y2  - December 2003
DO  - 10.3386/w10169
UR  - http://www.nber.org/papers/w10169
L1  - http://www.nber.org/papers/w10169.pdf
N1  - Author contact info:
Meng-Chun Liu
Chung-Hua Institution for Economic Research
75 Chang-Hsing Street
Taipei, Taiwan 106
REPUBLIC OF CHINA
Fax: 886-2-27390609
E-Mail: liu@cier.edu.tw

Shin-Horng Chen
CIER, 75 Chang-Hsing Street
Taipei, Taiwan
REPUBLIC OF CHINA
E-Mail: shchen@mail.cier.edu.tw
M1  - published as Shin-Horng Chen, Meng-Chun Liu. "International R&D Deployment and Locational Advantage of Developing Countries: A Case Study of Taiwan ," in Takatoshi Ito and Andrew K. Rose, editors, "International Trade in East Asia" University of Chicago Press (2005)

AB  - Although it is evident that R&D has undergone a process of internationalization, and that the less-advanced economies are becoming increasingly involved in this process, the substantial body of literature in this area has been based largely on the experiences of the developed countries. This paper aims to contribute to the understanding of this issue by examining R&D internationalization within a newly-industrializing economy, a prime example of which is Taiwan, and focuses especially on factors underlying locational advantage in attracting multinationals' offshore R&D. We begin with an examination of the literature on R&D internationalization and globalization, based upon which we emphasize the significance of  first-tier supplier advantage' in a Taiwanese context. We take advantage of an official database to reveal the patterns of foreign corporate R&D in Taiwan and to systematically examine the determinants of the R&D intensity of foreign affiliates at industry level. Our empirical results show that within Taiwan, foreign affiliates with higher R&D intensity tend to be more export oriented, are localized within Taiwan in terms of their sourcing of materials and capital goods, and belong to sectors with a larger pool of R&D labor.
ER  -