Barriers for Foreign R

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Barriers for Foreign RD in China

• Wenke, Ph.D
• Institute of Policy and Management
• Chinese Academy of Sciences

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Outline

• Introduction
• Research methodology and data collection
• Three types of barriers for foreign RD in China
• Several interesting patterns
• Conclusion

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1.Introduction

• Cooperating with Dr. Sun yifei, one part of the
  project Foreign RD Investment in China(founded
  by NSF, BCS-0214042 )
• Focusing on the barriers for foreign RD in china

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2.Research methodology and data collection

• The results are primarily based on 29 interviews
  with managers of foreign RD in China. The
  empirical sample consisted of 27 multinational
  corporations.

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3. Three types of barriers

• Barriers from policy environment
• Strong and bureaucratic government
• Import limitation
• Imperfect IPR protect system
• Difficulty for traveling to taiwan
• Barriers from local market
• Increasing operation cost
• Imperfect infrastructure
• Barriers with Human Resource Management
• Lack of innovative and experienced labors
• High employee mobility
• Difficulty in managing the diversified staff

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4.Several interesting patterns

• Mainland-born managers and non Mainland-born
  managers

mainland-born managers are more positive about
the environment in China.
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4.Several interesting patterns

• Variations among different cities

RD managers in difficult cities felt different
problems, though common problems do exist
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4.several interesting patterns

• Differences among Companies with Different
  Presence in China

The size of foreign investment is negative
correlation to the barriers they encounter.
We conducted case studies of company A and
company B.
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5.Conclusions and discussion

• Policy environment is still the major barrier,
  and other problems include high labor mobility,
  lack of talents and so on.
• the feelings of RD managers depend on the
  location of the establishment.
• more established foreign companies seem to have
  experienced more problems than smaller and less
  prominent foreign companies.

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thank you!