Role of Multinational Corporation
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DRUID Working Paper No 03-15
Globalisation of Innovation: The Role of Multinational Enterprises
by Rajneesh Narula and Antonello Zanfei
Globalisation of Innovation: The Role of Multinational Enterprises
Rajneesh Narula Dept. of International Economics & Management, Copenhagen Business School, Howitzvej 60 2000 Frederiksberg, Denmark e-mail rn.int@cbs.dk Antonello Zanfei Version: 26 November 2003 Forthcoming in, Jan Fagerberg, David Mowery, and Richard R. Nelson (editors), Handbook of Innovation, Oxford University Press 2004.
Abstract This paper undertakes a brief evaluation of the trends in the internationalization of innovative activities. We provide a taxonomy of R&D internationalization strategies, and discuss the main relevant theoretical and empirical issues, before discussing the centripetal and centrifugal forces underlying the nature and evolution of cross border innovation. We address the issue of international technology partnering as a key strategy that is complementary to the internationalisation of innovative activities through internal means, before raising important policy dimensions and directions for future research that derive from these debates. Key words: R&D internationalization, globalisation, multinationals, alliances, technology policy JEL Codes: F23, O32
ISBN 87-7873-148-8
1 1. Introduction Economic globalisation is generally accepted to imply the growing interdependence of locations and economic units across countries and regions. Technological change and the increasing significance of multinational enterprises (MNEs) are often cited as the primary driving forces of this process. In this chapter we attempt to evaluate – albeit tentatively – the changing extent and importance of MNEs as conduits for cross-border knowledge flows. It is important to note that MNEs use a variety of options through which innovation develops and diffuses across
ANISH
R
ESEARCH
U
NIT FOR
I
NDUSTRIAL
D
YNAMICS
DRUID Working Paper No 03-15
Globalisation of Innovation: The Role of Multinational Enterprises
by Rajneesh Narula and Antonello Zanfei
Globalisation of Innovation: The Role of Multinational Enterprises
Rajneesh Narula Dept. of International Economics & Management, Copenhagen Business School, Howitzvej 60 2000 Frederiksberg, Denmark e-mail rn.int@cbs.dk Antonello Zanfei Version: 26 November 2003 Forthcoming in, Jan Fagerberg, David Mowery, and Richard R. Nelson (editors), Handbook of Innovation, Oxford University Press 2004.
Abstract This paper undertakes a brief evaluation of the trends in the internationalization of innovative activities. We provide a taxonomy of R&D internationalization strategies, and discuss the main relevant theoretical and empirical issues, before discussing the centripetal and centrifugal forces underlying the nature and evolution of cross border innovation. We address the issue of international technology partnering as a key strategy that is complementary to the internationalisation of innovative activities through internal means, before raising important policy dimensions and directions for future research that derive from these debates. Key words: R&D internationalization, globalisation, multinationals, alliances, technology policy JEL Codes: F23, O32
ISBN 87-7873-148-8
1 1. Introduction Economic globalisation is generally accepted to imply the growing interdependence of locations and economic units across countries and regions. Technological change and the increasing significance of multinational enterprises (MNEs) are often cited as the primary driving forces of this process. In this chapter we attempt to evaluate – albeit tentatively – the changing extent and importance of MNEs as conduits for cross-border knowledge flows. It is important to note that MNEs use a variety of options through which innovation develops and diffuses across
Citations: 7 Fosfuri and Motta (1999) and Siotis (1999) show that a technological laggard may choose to enter a 13 Castellani and Zanfei (2004) have tried to provide some empirical basis to this view with reference to 14 As Findlay (1978 p.2-3) notes: “Stone age communities suddenly confronted with modern industrial