Cai, Hongbin; Todo, Yasuyuki; Zhou, Li-An - National Bureau of Economic Research (NBER) - 2007
Using a unique firm-level dataset from China's "Silicon Valley," we investigate how multinational enterprises (MNEs) affect local entrepreneurship and R&D activities upon entry. We find that R&D activities of MNEs in an industry stimulate entry of domestic firms into the same industry and...