Ths paper conducts both descriptive and empirical analyses on foreign R & D investments in China over the 1995-2001 period. The paper explains the motivations for foreign investors to carry out R & D activities in Cihna and examines the general trends of foreign R & D activities in China from several aspects, such as industry distribution, alliance structure, and country origin of foreign partners. Drawing from transaction costs theory, organizational capability and strategic perspective, the paper empirically examines the effects of multi-level factors on the R & D entry mode choice between internal R & D and R & D alliance. The findings suggest that national origin, location with market attractiveness, a firm's experience, and the objective of R & D activity are significantly related...[ Read more ]

Ths paper conducts both descriptive and empirical analyses on foreign R & D investments in China over the 1995-2001 period. The paper explains the motivations for foreign investors to carry out R & D activities in Cihna and examines the general trends of foreign R & D activities in China from several aspects, such as industry distribution, alliance structure, and country origin of foreign partners. Drawing from transaction costs theory, organizational capability and strategic perspective, the paper empirically examines the effects of multi-level factors on the R & D entry mode choice between internal R & D and R & D alliance. The findings suggest that national origin, location with market attractiveness, a firm's experience, and the objective of R & D activity are significantly related to the choice between internal R & D and R & D alliance.