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Factors for R&D internationalization

Table 2 Encouraging/Discouraging factors

Score 10 means all respondents find the factor highly encouraging; 0 - corresponds to neutral response by all respondents;

Score -10 (minus ten) means all respondents find the factor highly discouraging

Australia

Chile

China

Hong Kong, China

Indonesia

Japan

Korea

Malaysia

New Zealand

Philippines

Russia

Singapore

Chinese Taipei

Thailand

USA

A

Communication, Language and culture

1

Understanding the parent company's policies & practices

1 1 -1 1

-1 2

1 -1

1 -1 2

2

Technology / knowledge transfer

2 -2 -3 1 -2 2 -1 -3 1 3 -1 1

-1 1
3

Cultural adaptation between expatriates and local researchers/ engineers/ technicians

1

1

5

1 1 1 -2 2

1 3
4

Language and verbal communication

2 1 -3 -1 -2 -3 -2

2 -1

1

-2 2

B

Special treatment for New enterprises

5

Special tax and other tariff concessions for new enterprises

2 2 2 3

-1

3 1 1

1 1 1 -3
6

Preference on licensing agreements

-1 1 1

1 1 2

1 1 1 1 -1
7

Special depreciation or investment allowances for tax purposes

1

1 1

1

1 2 -1 1 2 1 2
8

Export/ Import concessions for machinery, equipment and spare parts to be used in the new enterprise

-1

1

2

1 1

C

Regulations (operational)

9

Regulations on organization, ownership and management

1

-2 1

2

3 2

2

1 2
10

Regulations regarding remittances of profits, royalties and technical assistance fees

-2 -3 1 -2 1

-4 1

-2 2 -1 1 -3
11

Requirement that component parts of an assembled product be manufactured in the country.

1 -2 -3 2 -2 2 -1

1 -2

2 1 1 -1
12

Export/ Import regulations

-1 -1

1

1

-1 1 -2 1

-1 1 -1
13

Regulation of the establishment, expansion, manufacture, distribution and diversification

1

-2 1

-2 -2

-2

2 1 1 -1
14

Price controls or limitations on profits

-1

-2 1

1 1 1 -1

1 -1

-2
15

Restrictions of foreign investments to certain fields

-1 -2 -2 3 -3 1 -2 -2 -1 -1 -3 -1

1

16

Ownership or occupation of land by foreign entities

-1 -1 -3 -2 -1 2 -1 -3 1 1

-1

4

17

Insistence on local equity participation

-1

-2 -1

2 1

-2

1

1

D

Taxation and other tariffs

18

Income tax and other taxes for enterprises

-3

-1 1

-1 1

-2

2 1 -1
19

Social security legislation

-2

-1 1

1 -3 1

3

-2
20

Special export tax concessions

1

2 2

-1 2 3 2 1

1 2 2 3
21

Trade agreements which the foreign country has negotiated with other foreign countries

1

1 2 -1 3 2 1

1

1 -1 1 1
22

Double taxation avoidance agreements

1

1

2

1 1 0

1

1 3
23

Special taxation of foreign enterprise and personnel

1 1 1

1 1

1 1

1

1

E

Treatment and legal issues

24

Foreign ownership and control

2 1

2

2 4 1 3 1 -1 3

2 4
25

Enforcement of laws and regulations when applied to foreign enterprise

2

2

1 2

3 2

3 1 2 4
26

Treatment before the law with respect to such matters as property rights, contract enforcement, and right of redress

2

-2 1 -1 1

-1 2 1 -1 1

1 4
27

Protection of patents, copyrights and trademarks

2

-1 -1 -2 2

1 1

2 1

5
28

Disparity of local laws with your government laws

1 -1

1

-1 1 1

1 1 1

F

Investment environment

29

An investment center assisting foreign investors*

2 1

2 1 1 2 1 2 1

3 1

30

Financial and other incentives for local and oversea investment

2

1 3 1 1 1 2 1 1

3

1 2
31

Multiple exchange rates

1 -1 1 1

1 -1 -1 1 -1

0 1 1 2
32

Investment Guarantee Agreement for convertibility and/or compensation in case of expropriation and/or war risk insurance

1

1

-1 2

2 1 1 2 1

2
33

Requirements for reinvestment of earnings

1

-1 1

1 1 1 2 1

1 1 3

34

Availability of capital (funding for R & D etc.)

1

1 4

5 2 2 1 1

3 2 1 2
35

Control of capital inflow and withdrawal

1

-1 3 -1 1 2 -2 1

-3 1

2
36

Protection and guarantees against expropriation and nationalization

1

-1 -1 -2 1 2

1

-3 1

1 2

G

Human Resources

37

Labour turnover

2

1 2

1

1 1 2

2

2
38

Employment of foreign man power

1 1 1 2

-1 1 1 2 1

3 1 1 2
39

Recruiting well qualified local talents

2

2

1 2

3 1 1 1 1 1 7
40

Loyalty and commitment to company

1 1 1 2

1 1

1

1 2 1

41

Availability of unskilled labour

1 2

1 3 1 1 1 1 3

1

4 2
42

Availability of skilled labour

1

1 3 1 3 2

2

2

1 5
43

Availability of management personnel

3 1

3 -1 1 2

2 1

2 2 -1 5

H

Infrastructure

44

General infrastructure like harbour, storage and transport

1

-1 1 2 3 2

2 1 -2 3 2 1 2
45

Power facilities

2 2 1 1 1 1 2 1 1 1 1 2 1

2
46

Telecommunication infrastructure

1

1 3 1 3 2 1 2 1 -2 3 2 1 4
47

Development of industrial estates

1

1 1 1 3 1 2 1 1 1 2 2 3 2
48

Ancillary or supporting industrial facilities

1 2

2

5 2 2 1 1 1 2 1 1 3
49

Housing, recreation and shopping facilities

2

2 1

2 2 1 3 1

2
50

Health and sanitary facilities

2 1 1 2

1 1 1 1 1

1 1

2

I

Government policies and related issues

51

Direct government assistance such as financial participation in : building, leasing plants, labour training, and provisions of such associated facilities as housing, power and transport installations

1 1 1 2 1 1 2 1 1

2

1 2
52

Establishment of free trade zones

1

-2 2 1

1

0

1 3
53

Tendency to establish and promote government-owned companies which compete with private enterprise

2

-1 2

1 1 1 2

1 1 2 2
54

Political stability

1

1 -1 1 -1 1 1 1 -2 3 -1

4