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This volume explores the extent to which multinational enterprises (MNEs) are decentralizing the creation of new technological capabilities to various countries. The book contends that technological strategies and innovation activities undertaken by firms are a critical part of the increasing internationalization of economic activity and that MNEs are the main actors for these changes. It goes on to explain that MNEs must now effectively manage new technological assets in order to cope with the extensive changes in the nature of international competition.
This book contributes to ongoing policy discussions on the internationalisation of innovation. Foreign-owned enterprises account for a rising share of national innovation expenditures and have become key actors in the national innovation systems of almost all OECD countries. Their new roles give rise to both hopes and concerns. The author examines the innovative activities of foreign-owned enterprises in Austria, a country with a huge share of overseas R&D investment. Empirical analysis reveals that foreign-owned enterprises exhibit a superior innovation performance compared to domestically owned enterprises. The performance differences, however, can be explained by factors such as firm size, sectoral affiliation, and export intensity, rather than by the ownership status. With respect to policy, the results neither confirm fears that foreign ownership could lead to an erosion of innovative activity in the host country, nor do they provide arguments for specific incentives to attract foreign-owned enterprises. Innovation policy should instead try to foster innovative capabilities of both foreign-owned and domestically owned enterprises.
'This wonderful volume brings together contributions mainly from the innovation literature, whose findings are in a sense quite familiar, but which in this collection are juxtaposed in such a way as to highlight their common institutional underpinnings. This is very much due to the efforts of the editor, whose insightful introduction and editorial vision brings out several interesting and emerging themes from this collection of papers. I think this volume breaks new ground in highlighting the embeddedness of MNE subsidiaries in multiple contexts, and it will be of considerable interest to scholars engaged with institutional analysis. However, I also believe that researchers interested in regional embeddedness, the geography of innovation, and knowledge management will find new angles to their work in this collected volume.' – Sarianna M. Lundan, University of Bremen, Germany Multinational companies are crucial actors in a global knowledge-based economy, combining the advantages of global and locally coordinated production and innovation strategies with specific regional and national factors. This book questions how MNCs can best exploit institutionally embedded knowledge, explores the utilization of external institutionally embedded knowledge in corporate innovation processes, and addresses the challenges of embeddedness. The expert contributors draw on managerial, economic, geographic and sociological perspectives to explore the essential roles of regional and national knowledge infrastructures and the cultural and political environment of MNCs. They build upon, update, and extend the discussion on the regional and national embeddedness of MNCs with new country case studies and comparative analyses, focussing on the relationship between innovation in companies and regional studies. Significantly, the book also establishes a link between two important debates that have hitherto been largely disconnected: Regional studies and international business studies separately address issues that fall within the scope of the book, but do not provide an integrated analysis of the embeddedness of MNCs. This pathbreaking book goes some way to fill this gap in the literature and as such, will prove invaluable to academics, R&D managers, regional policy makers and students with an interest in international business, business economics, regional studies and organization studies.
In contemporary economies, businesses must consistently make strides to remain competitive and profitable at both national and international levels. Unlike in the developed world, corporations in developing nations face a different set of challenges for achieving growth. Multinational Enterprise Management Strategies in Developing Countries is an authoritative reference source for the latest scholarly research on diverse opportunities and obstacles facing multinational corporations in emerging economies. Highlighting innovative perspectives and real-world examples, this book is ideally designed for researchers, practitioners, upper-level students, and industry professionals interested in management approaches for achieving success in international corporations.
This study deals with the organisation of innovation projects of multinational companies. The focus is on learning processes which occur within the company group as well as those taking place between the company and its regional environment. This work establishes a bridge between organisational and regional learning.
The concept of National Systems of Innovation was introduced as a method to describe the various elements which contribute to innovation performance and their interaction. In this book, the innovation structures of a broad set of countries are compared. It provides more than a pure compilation of quantitative indicators for international benchmarking, supporting an appropriate interpretation of the referring results and suggesting relevant conclusions for innovation policy.
Processes of knowledge production and dissemination are increasingly set in an international context. In research and higher education the links between local actors and the international environments are both proliferating and intensifying. Individual level self-organised international collaboration is increasingly supplemented by national and supranational organised activities, and by market oriented activity with a global scope. Starting from these observations, this book analyses patterns of internationalisation comprising the national and supranational level, the level of higher education institutions and private companies, as well as the level of individual researchers and graduates. As a laboratory for studying internationalisation the book uses the case of Norway, a small knowledge system set in an open society, political system and economy. The case offers exceptionally good data on the developments in its research and higher education system that record changes over time and across the different parts and levels of a national knowledge system
A multidisciplinary and transversal study of issues for governments, regulatory authorities and international business. Written for academics and professionals alike it explores the main themes of economic growth and sustainable development; trade, law and regulation, and competitive and managerial issues for international firms.
Winner of Balsillie Prize for Public Policy Winner of Donner Prize A challenge to prevailing ideas about innovation and a guide to identifying the best growth strategy for your community. Across the world, cities and regions have wasted trillions of dollars on blindly copying the Silicon Valley model of growth creation. Since the early years of the information age, we've been told that economic growth derives from harnessing technological innovation. To do this, places must create good education systems, partner with local research universities, and attract innovative hi-tech firms. We have lived with this system for decades, and the result is clear: a small number of regions and cities at the top of the high-tech industry but many more fighting a losing battle to retain economic dynamism. But are there other models that don't rely on a flourishing high-tech industry? In Innovation in Real Places, Dan Breznitz argues that there are. The purveyors of the dominant ideas on innovation have a feeble understanding of the big picture on global production and innovation. They conflate innovation with invention and suffer from techno-fetishism. In their devotion to start-ups, they refuse to admit that the real obstacle to growth for most cities is the overwhelming power of the real hubs, which siphon up vast amounts of talent and money. Communities waste time, money, and energy pursuing this road to nowhere. Breznitz proposes that communities instead focus on where they fit in the four stages in the global production process. Some are at the highest end, and that is where the Clevelands, Sheffields, and Baltimores are being pushed toward. But that is bad advice. Success lies in understanding the changed structure of the global system of production and then using those insights to enable communities to recognize their own advantages, which in turn allows to them to foster surprising forms of specialized innovation. As he stresses, all localities have certain advantages relative to at least one stage of the global production process, and the trick is in recognizing it. Leaders might think the answer lies in high-tech or high-end manufacturing, but more often than not, they're wrong. Innovation in Real Places is an essential corrective to a mythology of innovation and growth that too many places have bought into in recent years. Best of all, it has the potential to prod local leaders into pursuing realistic and regionally appropriate models for growth and innovation.