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

This paper examines how multinational corporations (MNCs) protect their intellectual property (IP) when they conduct R&D in countries with weak IP rights (IPRs) protection. Findings from a small-scale survey and three case studies in China show that hierarchical segmentation of the R&D proce...

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Bibliographic Details
Published inIEEE transactions on engineering management Vol. 57; no. 1; pp. 9 - 21
Main Authors Xiaohong Quan, Chesbrough, H.
Format Journal Article
LanguageEnglish
Published IEEE 01.02.2010
Subjects
China
Globalization
hierarchical segmentation
Industries
Information systems
Intellectual property
intellectual property (IP) protection
Interviews
IP (Internet Protocol)
IP networks
Laboratories
Modular
modularity
multinational corporation (MNC)
Organizational structure
Product development
R&D globalization
Segmentation
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Summary:This paper examines how multinational corporations (MNCs) protect their intellectual property (IP) when they conduct R&D in countries with weak IP rights (IPRs) protection. Findings from a small-scale survey and three case studies in China show that hierarchical segmentation of the R&D process can provide an effective way for IPR protection. Furthermore, a modular R&D structure adopted by many information technology companies can facilitate the hierarchical segmentation. Because R&D is becoming distributed across locations with varying levels of IPR protection, a center-peripheral R&D organizational structure is emerging within MNCs as R&D globalization proceeds.
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ISSN:0018-9391
1558-0040
DOI:10.1109/TEM.2009.2033043