Chapter

International R&D Deployment and Locational Advantage

Meng-chun Liu and Shin-Horng Chen

in International Trade in East Asia

Published by University of Chicago Press

Published in print September 2005 | ISBN: 9780226378961
Published online February 2013 | e-ISBN: 9780226379005 | DOI: http://dx.doi.org/10.7208/chicago/9780226379005.003.0004
International R&D Deployment and Locational Advantage

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This chapter examines the impact of locational advantage and research and development (R&D) on international trade focusing on the case of Taiwan. The findings reveal that those sectors with a larger pool of R&D labor tend to attract more foreign affiliates' R&D activities. The result also suggests that foreign affiliates with higher R&D intensity tend to be more export oriented and localized in terms of their sourcing of materials and capital goods. The experiences of Taiwan seem to suggest that even without world-leading R&D centers of excellence, a less-advanced economy can still build up a competitive production base as a starting point to take part in global production networks.

Keywords: locational advantage; research and development; international trade; Taiwan; foreign affiliates; export; centers of excellence; global production networks

Chapter.  11369 words. 

Subjects: Business and Management

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