Do Multinationals' R&D Activities Stimulate Indigenous Entrepreneurship? Evidence from China's "Silicon Valley" / Hongbin Cai, Yasuyuki Todo, Li-An Zhou.

Format:

Book

Author/Creator:

Cai, Hongbin.

Contributor:

National Bureau of Economic Research.

Todo, Yasuyuki.

Zhou, Li-An.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13618.

NBER working paper series no. w13618

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

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.

Notes:

Print version record

November 2007.