Growing R&D in Emerging Economies: Implications for International Management and Competitiveness

Motohashi, Kazuyuki (2012): Growing R&D in Emerging Economies: Implications for International Management and Competitiveness. Published in: International Journal of Global Business and Competitiveness , Vol. 7, No. 1 (2012): pp. 13-19.

Abstract

This paper presents the typology of overseas R&D, by interacting the direction of knowledge flow between home and host countries and the distinction of “research” and “development”, namely (1) technology driven, (2) cost driven, (3) market driven, (4) policy driven, (5) production driven and (6) innovation driven. The management style of local R&D sites is different depending on the type of its R&D activity. For example, for a local R&D activity based on home base exploiting strategy (cost, market, policy and production driven), networking with local innovation system (local firms, university and public research institutions) is less important, but technology driven R&D (based on home base augmentation strategy) requires substantial interactions with local players. In this sense, more autonomy on local R&D activities is needed to facilitate effective knowledge flows at local. Finally, a balance of knowledge flows within firm (headquarter and overseas subsidiary) and within local (subsidiary and local players) is important for innovation driven R&D. In addition, it is important to manage the balance between benefit such as seizing market opportunity and costs such as knowledge leakage to local competitors, particularly for technology and innovation driven R&s sites. Furthermore, in this paper, the relationship between local R&D type and international competitiveness model is discussed. As multinational R&D in emerging economies grow, double diamond model, which takes into local specific factors of overseas sites, as well as domestic factors, focused by original diamond model by Porter, becomes more relevant to analyze international competitiveness of nations.

• Item Type: MPRA Paper
• Language: English
• Keywords: double diamond model; emerging economies; international R&D management; international competitiveness
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M16 - International Business Administration; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D

References

Cantwell, J. And R. Mudambi (2005) NME Competence Creating Subsidiary Mandates, Strategic Management Journal, 26, 1109-1128.

Chen Y-C (2007) The Upgrading of Multinational Regional Innovation Networks in China, Asia Pacific Business Review 13(3),373-403.

Gammeltoft, P. (2006) Internationalization of R&D: Trends, Drivers and Managerial Challenges, Int. J. Technology and Globalization,2(2006), 177-199.

Ghoshal,S. And C. Bartlett (1990) The Multinational Enterprise as an Interorganizational Network, Academy of Management Review,15(4), 603-625.

Immelt, J. R., Govindarajan, V. And C. Trimble (2009) How GE is Disrupting Itself, Harvard Business Review, September 2009.

Kuemmerle, W. (1997) Building Effective R&D Capabilities Abroad,Harvard Business Review, March-April 1997.

Motohashi, K. (2011) Measuring Multinational’s R&D Activities in China by Patent Database: Comparison of European, Japanese and US Firms, a Paper Presented at Academy of Management Conference, August 2011, San Antonio, TX.

Motohashi, K. (2010) Management of Offshore R&D in China: Motivations and Cross Country Differences, China & World Economy, 18(6), 2010/11, 56-72.

Porter, M. E. (1990) The Competitive Advantage of Nations, New York, Free Press.

Rugman, A. M. And D’Cruz, . R. (1993) The Double Diamond Model of International Competitiveness: Canada's Experience, Management International Review, 32(2), 17-39.

UNCTAD (2005) UNCTAD Survey on the Internationalization of R&D: Current Patterns and Prospect on the Internationalization of R&D, UNCTAD, Geneva, December.

Von Zedtwitz, M. (2005) International R&D Strategies of TNCs from Developing Countries: The Case of China, in Globalization of R&D and Developing Countries, Proceedings of the Expert Meeting, United Nations, Geneva