Linking R&D strategy, national innovation system and FDI to firm performance

This paper investigates the role of R&D strategy, national innovation system (NIS) and foreign direct investment (FDI) in firm performance.Drawing on an institution-based view and the FDI spillover literature,we argue that firm performance is directly affected by R&D strategy, NIS and FDI spillovers. NIS also moderates FDI spillover effects on firm performance. Data analysis based on the World Bank Enterprise Survey of manufacturing firms in China in 2003 shows that the findings reinforce the hypotheses.