Publication

In this working paper, the authors determine in what ways, and to what extent, the research and development (R&D) facilities of multinational corporations (MNCs) in Taiwan interact with its indigenous innovation capabilities in the IT industry. The overseas R&D of Taiwan-based firms is also taken into account, with China being the major recipient of outward investment by Taiwanese IT firms. The authors argue that R&D services have become essential to Taiwan's economic development, an outcome driven by the emergence of a global production network.