TY  - JOUR
AU  - Cai, Hongbin
AU  - Todo, Yasuyuki
AU  - Zhou, Li-An
TI  - Do Multinationals' R&D Activities Stimulate Indigenous Entrepreneurship? Evidence from China's "Silicon Valley"
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13618
PY  - 2007
Y2  - November 2007
DO  - 10.3386/w13618
UR  - http://www.nber.org/papers/w13618
L1  - http://www.nber.org/papers/w13618.pdf
N1  - Author contact info:
Hongbin Cai
Guanghua School of Management
Peking University
Beijing 100871
China
E-Mail: hbcai@gsm.pku.edu.cn

Yasuyuki Todo
University of Tokyo
E-Mail: yastodo@k.u-tokyo.ac.jp

Li-An Zhou
Guanghua School of Management
Peking University
Beijing 100871
CHINA
E-Mail: zhoula@gsm.pku.edu.cn
M1  - published as Mariassunta Giannetti, Andrei Simonov. "Social Interactions and Entrepreneurial Activity," in Thomas Hellman and Scott Stern, editors, "Entrepreneurship: Strategy and Structure" Journal of Economics and Management Strategy 18(3), Fall 2009 (Blackwell Publishing) (2009)

M3  - presented at "Entrepreneurship: Strategy and Structure Conf.", September 13-15, 2007
AB  - Using a unique firm-level dataset from China's "Silicon Valley," we investigate how multinational enterprises (MNEs) affect local entrepreneurship and R&D activities upon entry. We find that R&D activities of MNEs in an industry stimulate entry of domestic firms into the same industry and enhance R&D activities of newly entering domestic firms. By contrast, MNEs' production activities or domestic firms' R&D activities do not have such effect. Since MNEs are technologically more advanced than domestic firms, our findings suggest that diffusion of MNEs' advanced knowledge to potential indigenous entrepreneurs through MNEs' R&D stimulates entry of domestic firms.
ER  -