R&D and patenting activities of foreign firms in China: The case of Japan

Chih Hai Yang, Toshiyuki Matsuura, Tadashi Ito

Research output: Contribution to journalArticle

Abstract

This study investigates the research and development (R&D) and patenting activities of foreign firms in China. Utilizing a panel dataset of Japanese affiliates during the period 2001–2007, we first examine the determinants of R&D activity and find that local market-oriented firms place more emphasis on R&D, whereas process export-oriented firms are less likely to conduct R&D. Affiliates within a large business group that has more affiliates have a higher propensity to undertake R&D. Using only firms with positive R&D expenditures, we next estimate the patent production function. Results indicate that the patent elasticity of R&D for Japanese affiliates is high, suggesting that they are more productive on patent production than other firms. Moreover, local market-oriented firms do need more patents to protect their products, whereas scientific firms demonstrate a lower willingness to register patents in China.

Original languageEnglish
JournalJapan and the World Economy
DOIs
Publication statusAccepted/In press - 2018 Jan 1

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Japan
patent
firm
China
production function
market
Foreign firms
Patenting
research and development
Patents
expenditures
determinants
Group
Local markets

Keywords

  • Multinational enterprises
  • Patent
  • R&D

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

Cite this

R&D and patenting activities of foreign firms in China : The case of Japan. / Yang, Chih Hai; Matsuura, Toshiyuki; Ito, Tadashi.

In: Japan and the World Economy, 01.01.2018.

Research output: Contribution to journalArticle

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