The Globalization of Corporate R & D: Implications for Innovation Systems in Host Countries

The Globalization of Corporate R & D: Implications for Innovation Systems in Host Countries

The Globalization of Corporate R & D: Implications for Innovation Systems in Host Countries

The Globalization of Corporate R & D: Implications for Innovation Systems in Host Countries

Synopsis

This research monograph examines the implications of trends of globalisation of corporate research and development, looking in particular at aspects of integration in developing countries and the impact this will have on host countries.

Excerpt

In the early 1990s I started working at the Research Policy Institute, Lund University, Sweden, where research work on internationalization of R&D was being led by Professor Jon Sigurdson. At about the same time, research on the globalization of corporate R&D started picking up momentum world-wide. I was soon bitten by the bug and a look at the literature showed that the main focus was on happenings within the industrialized world, while the developing countries were being regarded as totally marginalized. Having worked in India in the 1980s, I was well aware that a couple of transnational corporations (TNCs) had already located their strategic R&D units in India. This made me curious as to whether the location of such units in a developing country was an offshoot of the globalization of R&D. Questions that aroused my interest were: What were the driving forces? What type of technologies were being developed? What were the implications for the host country? a survey of the existing literature did not help much as there were few studies dealing specifically with these issues.

My research started with case studies of the TNCs' R&D units in India, and based on the results, a questionnaire survey was duly designed and administered. the results showed that TNCs that located strategic R&D in India were mainly in the new science-based technologies.

To validate my hypothesis that globalization of corporate R&D was evolving further to encompass more geographical areas outside the industrialized world, it was necessary for me to develop a database of TNCs' R&D activities in developing Asia and transition economies. Based on the r esearch work over the years, I have developed an evolutionary framework of the globalization of corporate R&D dating back roughly to the 1960s. the phenomenon has been analysed in terms of waves and the driving forces in each of these waves, the type of R&D located abroad in each wave and the potential implications for the host country have been identified.

This book may well be deemed an extensive study of the globalization of R&D, but more emphasis has certainly been laid on the emerging patterns. I hope readers will find the book useful and interesting.

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