Abstract:
The globalization of the world economy pushed for the emergence of a limited number of urban centres around the globe that share specific characteristics - global cities. Their strategic positions in the global economy provide organizations with environments in which global economic operations are more easily controlled and coordinated. Along with the spread of globalization, competition among firms increased sharply. Innovation became priority. Innovative actors began to take into account global cities for the location of their R&D activities, as their particular environments diminish the impact of the LOF. Global cities located in developed and emerging countries present distinct characteristics, as well as MNCs from developed and emerging markets show different capabilities and motives when locating R&D activities abroad. Benefits and costs resulting from the possible combinations are explored. Among emerging countries, China represents the most interesting case. The last decades witnessed the rise of China as a leading global power and FDI destination. More recently, China has also emerged as a location for foreign R&D. However, the Chinese context and in particular the Chinese innovation system present specific characteristics. The Chinese government, however, still interferes in the economic life of the country in many ways. Idiosyncrasies of the Chinese context give rise to different opportunities and challenges for R&D activities. Chinese global cities (in particular Beijing and Shanghai) exhibit specific features and have emerged as preferred locations for R&D activities. The complex dynamics that occur in the connection of global cities, knowledge sourcing and the idiosyncrasies of the Chinese context are analyzed through the observation of a sample of USPTO pharmaceutical patents granted between 1975 and 2010 and linked to the Chinese context.
