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Reasons for R&D internationalization

Results of APEC-ISTI survey

An APEC-IST survey was carried out by the International R&D Cooperation Division, Agency of Industry Science and Technology, Ministry of International Trade and Industry, Japan in 1999, to study the R&D internationalization in industrial sector among APEC economies. 24 reasons were included in the survey form sent to the 21 economies. The following are the top twelve reasons cited for selecting an economy:

• Close to market or customers
• Establish an integrated system ranging from R & D to production & sales
• Establish a regional R & D base in this economy
• Apply parent company's product, equipment and technology in this economy
• R&D support for manufacturing facility and servicing customers
• For logistics reasons
• Enter new market
• Establish joint venture
• Introduce new products and services
• Scan overseas technologies and markets
• Explore new avenues
• Availability of funds for overseas investment

If results are sorted for developed economies and developing economies, it can be inferred that, developed economies set up R&D centers in developing economies for the following reasons:

• Getting close to customer
• Testing products. For example place for food and pharmaceutical products for end customer
• Pressure from local government and national agencies
• Lower manpower costs

Similarly developing economies set up R&D centers in developed economies for:

• Buying and customising sophisticated technologies
• Sell their products, especially services
• Eventually develop and manufacture products in home economy for global consumption.