Research Article

FDI and Intellectual Property Protection in China: A Game Theory Perspective

Dong-Mei Lee
Shanxi University, P. R. China
* Corresponding author
Lee-Yuan Wang
Shanxi University, P. R. China
Yue Wang
Shanxi University, P. R. China
Dai-Jiao Zhou
Shanxi University, P. R. China
DOI icon 10.24018/ejbmr.2021.6.6.1162

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Submitted 2021-11-08
Published 2021-12-05

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Table of Contents

Article Main Content

The large-scale spread of R&D activities by MNCs to investment host countries is a new phenomenon of globalization in the past ten years. For the host country, especially a developing host country such as China, how to promote the spillover effect of TNC research and development institutions on the host country and curb its crowding-out effect is a new topic. This paper analyzes the R&D strategy adopted by transnational corporations in China. We explain the relationship between the strength of intellectual property protection in China and the choice of the organization form of R&D activities by transnational corporations with game theory and proves the relationship between the two with data. Finally, policy implications are proposed for the trend of sole proprietorship of R&D activities of transnational corporations.

Keywords: FDI; Intellectual property protection; R&D

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