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APEC Survey 99

Respondents' profile

21 industries, which responded to the APEC-IST survey 1999, are based in Australia, China, Singapore and US. They are mostly infrastructural and electronics firms.

Reasons for locating R&D facilities

The following are the top 3 reasons indicated for locating R&D according to the APEC-IST survey 1999:

• Apply parent company's product, equipment and technology in this economy
• Exchanging R & D results with foreign subsidiaries
• Enter new market

Factors affecting R&D internationalization

The following top 7 factors encourage R&D internationalization according to the APEC-IST survey 1999:

• Special export tax concessions
• Special tax and other tariff concessions for new enterprises
• Preference on licensing agreements
• Availability of capital (funding for R & D etc.)
• Development of industrial estates
• Ancillary or supporting industrial facilities
• Financial and other incentives for local and overseas investment

The following top 10 factors discourage R&D internationalization:

• Regulations regarding remittances of profits, royalties and technical assistance fees
• Technology / knowledge transfer
• Ownership or occupation of land by foreign entities
• Regulation of the establishment, expansion, manufacture, distribution and diversification
• Restrictions of foreign investments to certain fields
• Control of capital inflow and withdrawal
• Export/ Import regulations
• Treatment before the law with respect to such matters as property rights, contract enforcement, and right of redress
• Disparity of local laws with your government laws
• Multiple exchange rates

Co-operation and competition with other players

In the APEC-IST survey 1999 ten industries reported contracting out some of manufacturing and assembling to local suppliers and giving technical advice to local suppliers and collaboration projects with local companies. Overseas contracting was also indicated. On factors for collaboration, price received both positive and negative scores.