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Columbia FDI Perspectives: A new geography of innovation - China and India rising

Gert Bruche (5-1-2009)
With some delay, the internationalization of business R&D is following the globalization of production to China and India.  However, the bulk of business R&D in large triad (North America, Europe and Japan) countries is still carried out in the home country, and R&D FDI flows still take place predominantly within the triad. Moreover, the new R&D from MNEs' investment and offshoring to China and India is limited in sectoral scope: by far the largest share is accounted for by information and communication technologies, and the remainder is more or less covered by the health sector (pharma, biotech and various chemical, preclinical, and clinical services) and the automotive industry.

Finally, most MNE R&D work is concentrated in only a few regional clusters: taken together, Beijing & Shanghai and Bangalore/Pune/National Capital Region represent 60-80 % of all MNE R&D work.  


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