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Internationalization of R&D: A survey of some recent research

Published on Nov 1, 1993in Research Policy5.42
· DOI :10.1016/0048-7333(93)90010-F
Ove Granstrand20
Estimated H-index: 20
(Chalmers University of Technology),
Lars Hfikanson36
Estimated H-index: 36
(HHS: Stockholm School of Economics),
Sören Sjölander7
Estimated H-index: 7
(Chalmers University of Technology)
Cite
Abstract
This paper surveys the current state of the art concerning the management and economic impact of geographically decentralized research and development (R&D) in multinational companies (MNCs). This line of research has recently begun to attract renewed interest, in reflection of not only critical new trends regarding the nature and conditions of technological change but also significant developments in the realm of economic and managerial theory. The aim of this paper is, first, to outline the empirical and theoretical background and perspective of this new research agenda. Second, it gives a summary and overview of prior research in the area. Third, it outlines the content and structure of a number of recent studies. Based on these studies the paper identifies a number of trends and implications in terms of policy issues and critical areas for future research.
  • References (37)
  • Citations (186)
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References37
Newest
Published on May 1, 2009in Oxford Bulletin of Economics and Statistics0.99
Robert C. Hirschey1
Estimated H-index: 1
(Harvard University),
Richard E. Caves41
Estimated H-index: 41
(Harvard University)
Published on Jan 1, 1994in Research Policy5.42
John H. Dunning62
Estimated H-index: 62
(SPbU: Saint Petersburg State University)
Abstract This paper reviews the role of multinational enterprises as creators of technological capacity, and the extent to which they assist or inhibit the geographical dispersion of such capacity in the global economy. It then goes on to consider the impact of MNE activity on the technological goals of home and host countries, and concludes that much depends on the motives for and types of foreign direct investment, the size and economic structure of the countries concerned, and the technologic...
Published on Nov 1, 1993in Research Policy5.42
Lars Hfikanson36
Estimated H-index: 36
(HHS: Stockholm School of Economics),
Robert Nobel9
Estimated H-index: 9
(HHS: Stockholm School of Economics)
Abstract In 1987, Sweden's 20 largest multinationals together operated some 170 foreign RD (2) ‘market proximity’, i.e. adaptation of centrally developed products (and processes) to local market conditions (32%); (3) exploitation of foreign RD (4) ‘political factors’, i.e. environmental factors more or less directly influenced by government action (34%). The remaining 20% of employment seemed to be motivated by a combination of factors. The primary aim of the first three types of foreign R&D uni...
Published on Jan 1, 1992
De Meyer5
Estimated H-index: 5
,
Arnoud Cyriel Leo5
Estimated H-index: 5
Published on Mar 1, 1991in Journal of International Business Studies7.72
Parimal Patel11
Estimated H-index: 11
(University of Sussex),
Keith Pavitt39
Estimated H-index: 39
(University of Sussex)
US patenting by 686 of the world's largest manufacturing firms shows that their share of the world's production of technology is less than their share of R&D activities, and varies greatly amongst sectors. In most cases, the technological activities of these large firms are concentrated in their home country, the characteristics of which influence the volume and trends in their technological activities much more strongly then the international component of these activities. At the same time, the...
Published on Jun 1, 1990in Journal of Economic Behavior and Organization1.40
Ove Granstrand20
Estimated H-index: 20
(Chalmers University of Technology),
Sören Sjölander7
Estimated H-index: 7
(Chalmers University of Technology)
This paper describes how large, typically multi-technology corporations build up and exploit their technological capability by purchasing small, technology-based firms in order to acquire their technology. The frequency, possible causes and economic effects of this phenomenon are elaborated, based on empirical studies of Swedish industry. A new mechanism for trading technology through the trading of small firms among large firms is proposed.
Published on Apr 1, 1990in Research Policy5.42
Michael Wortmann1
Estimated H-index: 1
Theories on multinational companies ’ generally presume that a technological advantage resulting from innovative R&D of the parent corporation is a prerequisite for its ability to establish manufacturing subsidiaries abroad, that technology is transferred in a unidirectional flow from the parent company to these subsidiaries, and that R&D at the affiliates is primarily concerned with an adaptation of the transferred technologies to the special needs of the host markets and, in some cases, with a...
Published on Jan 1, 1990in Journal of Marketing7.82
Michael E. Porter91
Estimated H-index: 91
With the publication of his best-selling books "Competitive Strategy (1980) and "Competitive Advantage (1985), Michael E. Porter of the Harvard Business School established himself as the world's leading authority on competitive advantage. Now, at a time when economic performance rather than military might will be the index of national strength, Porter builds on the seminal ideas of his earlier works to explore what makes a nation's firms and industries competitive in global markets and propels a...
Published on Apr 1, 1989in Southern Economic Journal0.83
Giovanni Dosi64
Estimated H-index: 64
,
Christopher Freeman43
Estimated H-index: 43
+ 2 AuthorsLuc Soete31
Estimated H-index: 31
Cited By186
Newest
Marina Papanastassiou16
Estimated H-index: 16
(Middlesex University),
Robert Pearce23
Estimated H-index: 23
(University of Reading),
Antonello Zanfei20
Estimated H-index: 20
(University of Urbino)
Internationalization of R&D and innovation by multinational enterprises (MNEs) has undergone a gradual and comprehensive change in perspective over the past 50 years. From sporadic works in the late 1950s and in the 1960s, it became a systematically analyzed topic in the 1970s, starting with pioneering reports and “foundation texts”. Our review unfolds the theoretical and empirical evolution of the literature from dyadic interpretations of centralization versus decentralization of R&D by MNEs to...
Published on Mar 1, 2019in Journal of International Management2.83
Yang Liu1
Estimated H-index: 1
('QUB': Queen's University Belfast),
Yang Liu ('QUB': Queen's University Belfast)
Abstract Studies on R&D internationalization have identified the decentralization-recentralization pattern of many multinational corporations (MNCs). Studies have also indicated that MNCs tend to pursue a transnational emphasis during R&D recentralization. This research focuses on recentralization of new product development (NPD) in MNCs and aims to reveal different processes of it towards a transnational emphasis. Through a qualitative case study of four MNCs, the NPD recentralization process w...
Published on Aug 1, 2018in Management International Review2.69
Srivardhini K. Jha5
Estimated H-index: 5
(IIMB: Indian Institute of Management Bangalore),
Charles Dhanaraj1
Estimated H-index: 1
(TU: Temple University),
Rishikesha T. Krishnan9
Estimated H-index: 9
(Indian Institute of Management Indore)
Our inductive study of nine European multinational enterprises (MNEs) and their R&D units in India uncovers a distinct trajectory of overseas R&D evolution in emerging markets. In contrast to the well-established trajectory of foreign R&D evolution that begins by adapting existing MNE products to the local market, this alternative trajectory begins by leveraging cost arbitrage and progresses through three unique configurations towards a global product mandate. Our study also unravels how the R&D...
Published on Jan 1, 2018in Journal of International Business Studies7.72
Torben Schubert14
Estimated H-index: 14
(Lund University),
Elisabeth Baier7
Estimated H-index: 7
,
Christian Rammer21
Estimated H-index: 21
We develop a behavioural framework of bounded rational decision-making under uncertainty to analyse the role of technological dynamism in the firm’s environment for its decision to internationalise innovation. Applying prospect theory, we argue that technological uncertainty in the firm’s environment affects its risk preferences differently depending on its technological capabilities. A key prediction is that firms with low capabilities will internationalise innovation when faced by technologica...
Published on Sep 1, 2017in China journal of accounting research
Xin Xu1
Estimated H-index: 1
(ZUEL: Zhongnan University of Economics and Law),
Yun Xia1
Estimated H-index: 1
(JNU: Jinan University),
Chuntao Li (ZUEL: Zhongnan University of Economics and Law)
Abstract Within the special environment of the ChiNext market, we study how an internationalization strategy affects the independent innovation of Chinese entrepreneurial companies from two dimensions: R&D input and patent output. An internationalization strategy has a significant incentive effect on R&D input and a significant efficiency improvement effect on patent output. Entrepreneurial companies with higher degrees of internationalization have higher R&D inputs and patent outputs. After end...
Published on Oct 1, 2016in Long Range Planning3.36
R. Michael Holmes11
Estimated H-index: 11
,
Haiyang Li22
Estimated H-index: 22
+ 2 AuthorsTrey Sutton3
Estimated H-index: 3
This study examines factors affecting MNCs' establishment of R&D centers in China (i.e., China R&D centers). We argue that China offers not only location advantages (e.g., economic growth) that encourage MNCs to establish R&D centers there, but also location disadvantages (e.g., weak intellectual property protection) that discourage MNCs from doing so. Examining a sample of China R&D centers established by U.S. MNCs over fifteen years, we find that China's location advantages and location disadv...
Published on Aug 1, 2016in International Business Review3.64
Monica Riviere3
Estimated H-index: 3
,
Gabriele Suder8
Estimated H-index: 8
(University of Melbourne)
While strategic renewal has increasingly received interest from strategy scholars (Agarwal & Helfat, 2009; Baden-Fuller & Volberda, 1997; Capron & Mitchell, 2009; Crossan & Berdrow, 2003; Gulati & Puranam, 2009; Huff, Huff, & Thomas, 1992), its gains from internationalization are less understood. We draw on both internationalization and strategy literature to investigate what is known about ‘if’ and ‘how’ firms renew their capabilities through internationalization. We anticipate that the scope o...
Published on Feb 22, 2016
Monia Lougui1
Estimated H-index: 1
,
Anders Broström9
Estimated H-index: 9
This study investigates the relationship between mergers and acquisitions (M&A) and employee entrepreneurship in human capital-intensive service sectors. We investigate two sets of theoretical mechanisms. First, M&As may push employees entrepreneurship by lowering the average barriers of leaving the current employment (i.e. being associated with general deterioration of working conditions). Second, M&A activities may generate new entrepreneurial opportunities, which are first and foremost access...
Published on Mar 1, 2015in Industrial and Corporate Change1.82
Jaana Rahko2
Estimated H-index: 2
(University of Vaasa)
The internationalization of corporate research and development (R&D) activities is a growing phenomenon, but previous empirical studies provide inconclusive evidence of its effects on the innovation performance of firms. This article examines how the innovation performance of European firms changes when they begin to internationalize their R&D activities. Propensity score matching and difference-in-differences methods are applied to control for self-selection and to estimate the causal effect of...
Published on Mar 1, 2015
Sandro Montresor9
Estimated H-index: 9
(Kore University of Enna),
Antonio Vezzani8
Estimated H-index: 8
We investigate the impact of outward Foreign Direct Investments (FDI) on the Multinational Corporations technological leadership, meant as the capacity of entering and remaining among the top Research & Development (R&D) world investors. The research hypotheses are formulated by distinguishing FDI in R&D from FDI in other economic activities. The findings support our hypotheses with respect to the top R&D circles of the European Industrial Research and Innovation Scoreboard. Increasing the numbe...