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Changing the Shanghai Innovation Systems

The Role of Multinational Corporations' R&D Centres

Dr Yun-Chung Chen is Assistant Professor, Division of Social Science, The Hong Kong University of Science & Technology, Division of Social Science, Clear Water Bay, Kowloon, Hong Kong, Tel: +852-2358-7819, Fax: +852-2335-0014.

This article intends to explain the interaction between the local innovation systems and the knowledge intensive type of foreign direct investment (FDI) in China since the mid-1990s.¹ Since this period, more than thirty large multinational corporations (MNCs) have located their wholly-owned R&D centers in Shanghai because of its rich knowledge assets, competitive market, agglomeration of IT industrial cluster, and effective and flexible local governance. More importantly, the localisation of these R&D centers does not result in an isolated high-tech colony, but technology spillover in the form of new spin-offs, the mobility of trained engineers between MNCs and local firms, and the creation of a new technology research field through MNCs-University joint research labs. This in turn enriches and restructures Shanghai's existing innovation systems.

Science Technology & Society, Vol. 11, No. 1, 67-107 (2006)
DOI: 10.1177/097172180501100104


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