ABSTRACT
R&D-related FDI inflows into China have surged in recent years, accumulating to about US$4 billion, and the number of registered R&D centers of foreign companies reached 700 by 2004. Although the first R&D center of an MNC was set up in 1993, most of the known projects are of recent origin (established after China’s accession to the WTO in December 2001). While the majority of these centers focus on adaptation types of innovations, some perform innovative R&D that is closely integrated with MNCs’ global innovation networks, targeting global markets (UNCTAD 2005, p. 141).
