R&D internationalization and innovation performance

? 2014 Elsevier Ltd. 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.