Cheng Peng: The Scale of FDI and Innovation of Local Firm

The scale of FDI and innovation of local firm Cheng Peng Management school, Graduate university of Chinese academy of sciences [email_address]

Outline
Structural differences of BRICS’ foreign investment
The relationship between FDI scale and local firm R&D intensity: Comparison of China and Brazil

Structural differences of BRICS’ foreign investment

Industrial characteristic of Brazil’s use of FDI 2006 January-October,2007 Financial services 13.5% 13.80% Electricity, water and gas services 10.5% 3.20% Steal 7.7% 15.80% Paper 7.3% 1.70% Business Services 6.9% 7.80% Telecom Services 5.5% 1.70% Chemicals 4.2% 4.80% Real estate 4.0% 2.40% Textile 2.9% 0.20% Construction 2.8% 3.80% Mining of metal ores 2.7% 10.90% Oil production 2.4% 2.10%

Industrial characteristic of Brazil FDI

Industrial characteristic of Russia FDI 15.50% Steal 2006 Mining of metal ores 23.70% Real estate 13.10% Financial services 8.10% Business Services 6.60% Telecom Services 6.10% Food 6.10% Oil production 6.00% Nonmetal Mineral Products 2.40% Chemicals 1.70%

The industrial distribution of Russia and South Africa’s use of FDI 2007 Russia 2005 South Africa

The industrial distribution of China and India's use of FDI 2009 India 2007 China

The tertiary distribution of India's use of FDI in 2009 Real estate telecommunication IT Transportation

The tertiary distribution of China's use of FDI in 2007 Real estate Business Services

The relationship between FDI scale and local firm R&D intensity

Comparison of local and foreign firm’s R&D intensity of pharmacy in India Company Name R&D Exp 2008 R&D Intensity 2008 Rs. Crores Percentage of Total Sales Dr. Reddy'S Laboratories Ltd. 333.45 9.2 Cipla Ltd. 232.30 5.4 Lupin Ltd. 193.37 7.3 Sun Pharmaceutical Inds. Ltd. 144.39 5.9 Aurobindo Pharma Ltd. 117.51 4.9 Cadila Helthcare Ltd. 161.80 9.2 Wockhardt Ltd. 108.40 7.5 Torrent Pharmaceuticals Ltd. 113.17 11.3 Panacea Biotec Ltd. 107.67 12.9 Ranbaxy Laboratories Ltd. 471.38 11.9 Matrix Laboratories Ltd. 119.70 12.3 Pfizer Ltd. 28.35 3.6 GlaxoSmithKline Pharmaceuticals Ltd. 12.68 0.7

Comparison of local and foreign firm’s R&D intensity in China The R&D intensity of local firm is stronger than foreign firms in China, India and Brazil.

Study by Brazilian Scholars
Zucoloto & Junior(2005): the scale of FDI is inversely proportional to that of the R&D intensity in Brazil.
Is there this phenomenon in China?

Brazil: The relationship between FDI scale and local firm R&D intensity

China: The relationship between FDI scale and local firm R&D intensity

Thanks

Cheng Peng: The Scale of FDI and Innovation of Local Firm

by STEPS Centre on Aug 17, 2010

Accessibility

Categories

Tags

Upload Details

Usage Rights

Statistics

Cheng Peng: The Scale of FDI and Innovation of Local Firm — Presentation Transcript