R&D internationalization and innovation performance

This paper investigates the effect of R&D internationalization on firm innovation performance. Using a longitudinal dataset of Taiwanese high-tech firms, we test the effects of R&D internationalization in terms of intensity and diversity. Results reveal a curvilinear U-shaped relationship, suggesting the benefits of R&D internationalization eventually outweigh the costs after critical levels of intensity and diversity. Additionally, we find that a firm's experience in foreign expansion may have a positive moderating impact on the relationship between R&D internationalization and innovation performance, which suggests that the effect is contingent on the firm's capability in dealing with the complexities and uncertainties inherent in international business. (C) 2014 Elsevier Ltd. All rights reserved.