City Level Location Selection of R&D Related FDI in China

With decades of rapid growth, China has become the one of the most attractive countries for foreign investment, and the most desirable destination for foreign R&D. It is widely recognised that foreign R&D is highly concentrated in a few major cities, in the case of China, Beijing and Shanghai are the two hotspots. However, the level of concentration in these two cities has beyond the logical explanation regarding their overall share of the economy and resources. Other cities with more favourable conditions are long been overlooked. The imitating behaviours conducted by foreign investors and the lack of trust and understanding in those cities are the main reason for such circumstance. This research aims to solve this issue by providing a comprehensive ranking, work as guidance for foreign R&D investment. It includes a total of 35 indicators under the five main categories, namely, General Economy, Education, Hi-tech Industry, Infrastructure and Foreign Investment and Trade. It covers five years data (2008- 2012) that obtained mainly from creditable sources of China?s National Bureau of Statistics. As the result, Beijing and Shanghai back by their substantial political and economic status have well stood at the top. Other cities like Guangzhou, Tianjin, Nanjing, and Shenzhen has closely followed up which well demonstrated their great strengths and potentials. Despite the relatively less developed in China?s inland area, cities in the central and western regions, like Wuhan, Chengdu and Chongqing reveal their sound foundation and the vast opportunities that supporting by their rich hinterland resources and preferential policies such as government vigorously promoted \u84West Development Strategy?