The effect of R&D internationalization on the innovation performance in Chinese high-tech firms

Abstract

Using the samples of listed high-technology companies with oversea subsidiaries recorded in the China Stock Market and Accounting Research (CSMAR) Database, this paper discusses the effect of R&D internationalization on innovation performance in terms of intensity and diversity. Additionally, this paper also tests the impacts of international experience, R&D input degree, firm’s age, firm’s size and firm’s financial situation on the relationship between R&D internationalization and innovation performance. The result is for Chinese high-tech firms, the degree of R&D internationalization intensity has an inverted U-shape effect on the innovation performance. Whereas the degree of R&D internationalization diversity has a U-shape effect on the innovation performance. Additionally, international experience slightly negatively moderating the relationship between R&D internationalization intensity and firm’s innovation performance, but it is not a significant moderator in the relationship between R&D internationalization diversity and firm’s innovation performance.