Hierarchical Segmentation of R&D Process and Intellectual Property Protection: Evidence from Multinational R&D Labs in China

39 Pages Posted: 22 Apr 2008

See all articles by Xiaohong Quan

Xiaohong Quan

San Jose State University

Henry Chesbrough

Harvard University - Entrepreneurial Management Unit; University of California, Berkeley - Haas School of Business

Date Written: 2008

Abstract

This paper examines how multinational corporations (MNCs) protect their research and development (R&D) activities that are conducted in weak intellectual property rights (IPR) regime countries. Findings from a small scale survey and three case studies in China show that hierarchical segmentation of R&D process can be an effective way for MNC R&D labs to protect their intellectual property. Furthermore, a modular R&D structure seen in many IT companies can facilitate this hierarchical segmentation. A center-peripheral R&D organizational structure of MNCs thus appears in the era of globalization of R&D.

Keywords: Intellectual Property Protection, Innovation, Multinational Corporation, Globalization of R&D, Hierarchical segmentation, China

Suggested Citation

Quan, Xiaohong and Chesbrough, Henry, Hierarchical Segmentation of R&D Process and Intellectual Property Protection: Evidence from Multinational R&D Labs in China (2008). 2008 Industry Studies Conference Paper. Available at SSRN: https://ssrn.com/abstract=1123570 or http://dx.doi.org/10.2139/ssrn.1123570

Xiaohong Quan (Contact Author)

San Jose State University ( email )

San Jose, CA 95192-0066
United States

Henry Chesbrough

Harvard University - Entrepreneurial Management Unit ( email )

Cambridge, MA 02163
United States
617-495-5037 (Phone)
617-496-4072 (Fax)

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States
510-643-2067 (Phone)

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