percent level) is statement 5: The potentially important intellectual property is developed in the home country.

In interviews with industry R&D managers, the case was often made that ties to local authorities are very important for intellectual property protection in China, and this is the primary reason for its inclusion in the strategies list. The results in Figure 10 include responses about other emerging economies as well. For sites in China the mean response for TiesLocal is 3.9, but it is not statistically significantly different from the mean for developed economies.

A related series of questions concerned the type of research conducted at home versus sites outside the home country; that is, the questions focused on the creation of intellectual property rather than on protecting and capitalizing on intellectual property. The focus is on whether the science application is novel or not and on whether the R&D is for the creation of products or services that are new to the firm or already offered to customers of the firm. Respondents were provided with the following:

We are interested in the types of R&D conducted OUTSIDE the home country as they relate to new technologies and markets defined as follows.

A NEW TECHNOLOGY is a novel application of science as an output of the R&D. It may be patentable or not.

Improving FAMILIAR TECHNOLOGY refers to an application of science currently used by you and/or your competitors.

R&D for NEW MARKETS is designed to create products or services that are new to your firm.

R&D for FAMILIAR MARKETS refers to improvement of products or services that you already offer your customers or where you have a good understanding of the end use.

This gives four possible types of R&D:

  1. Improving familiar technologies for familiar markets

  2. Improving familiar technologies for new markets

  3. Creating new technologies for familiar markets

  4. Creating new technologies for new markets.

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