Research On R&D Internationalization And Innovation Performance Of Strategic Emerging Industry

With the development of information globalization and economic globalization, some major developed countries are regarding the science and technology innovation as the most important strategic investments, and turning to the strategic emerging industries. Compared with the other developed countries, the time of emerging industry’s development in China is shorter and the experience is lack, innovation ability is much weaker than the other developed countries. In order to improve the innovation performance of enterprises in our country, it’s not only need to attract foreign investment and advanced technology at home, but also to implement the strategy of "going out" to get overseas R&D resource. It requires us to actively implement the strategy of R&D internationalization, and strive to improve the lever of research and development, in order to improve the international competitiveness.We introduce a consolidated theoretical framework that explains how R&D internationalization affects a firm’s innovation performance. Our experimental approach utilizes two important measures of R&D internationalization: the intensity of R&D internationalization(a firm’s R&D expansion related to its foreign expansion), and the diversity of R&D internationalization(the firm’s geographic distribution of R&D activities).We built a research model and put forward the hypothesis based on the research of previous scholars. We collected our sample from the companies of China A-share strategic emerging industry, which contained 120 companies. We test the effects of R&D internationalization in terms of intensity and diversity. Results reveal a curvilinear U-shaped relationship. Initially, resource constraints and the increasing costs of managing and coordinating R&D activities across the globe negatively influence innovation performance as levels of R&D internationalization increase. However, at a certain intensity and width of geographic scope, the benefits of R&D internationalization eventually outweigh the costs, which lead to an overall enhancement in the firm’s innovation performance. Our empirical findings reveal that a combination of R&D internationalization ensures increased innovativeness. This can help emerging industries compensate for the disadvantages they face when competing in international markets.In conclusion, a major contribution of this study is the theoretical development of a conceptual model for exploring the effects of R&D internationalization on innovation performance in terms of intensity and diversity. Results reveal the R&D internationalization plays an important role on improving innovation performance. It provides a theoretical support for further optimizing the investment on R&D internationalization and improving innovation performance.