The Changing Geography of R&D in Multinational Firms
- Davide Castellani – Henley Business School, University of Reading
- Bernhard Dachs – AIT Austrian Institute of Technology – Bernhard.Dachs@ait.ac.at
In the last 30 years firms have increasingly located innovation and R&D activities outside their home country. This trend has become known as international knowledge sourcing or the internationalisation of R&D and innovation activities (Dunning and Lundan, 2009; Papanastassiou et al., 2020). Regarded as a marginal phenomenon by the literature in the 1970s and 1980s, it emerged into one of the decisive factors for the long-term evolution of business R&D in many countries, as well as for the competitiveness of multinational enterprises. The largest 2,500 corporate R&D performers today account for about 90% of global business R&D expenditure. Only a small minority of them are not multinational firms (Hernández et al., 2019).
The internationalisation of R&D has inspired a considerable body of research in recent years. Many of these contributions were related to geography. An important topic within this literature are location decisions for R&D and innovation activities (Cantwell and Iammarino, 2000; Thursby and Thursby, 2006; De Backer and Hatem, 2010; Ascani et al., 2016). Scholars also investigate cross-country knowledge flows and the co-ordination of globally dispersed R&D within the multinational firm (Gupta and Govindarajanan, 2000; Criscuolo and Narula, 2007; Rabbiosi, 2011; Galli Geleilate et al., 2020). Research also addressed the impacts of R&D internationalisation on home and host countries or regions, including clusters (UNCTAD, 2005; D’Agostino et al., 2013; de Rassenfosse and Thomson, 2019). Recently, a special focus was added on knowledge sourcing by multinational firms from emerging economies (Narula, 2012; Giuliani et al., 2014; Crescenzi et al., 2016; Ciabuschi et al., 2017).
The special session wants to take up these topics and develop them further. Contributions from economic geography, but also from an international business, innovation economics, management, or from an international economics perspective are welcome. Submissions may cover, but are not limited to, the following topics:
- How did geographical patterns of R&D by multinational firms evolve over the last decades? How did location patterns change over time?
- R&D internationalisation is driven by the need to access localized knowledge not available in the home country. What is the role of specific locational factors, such as scientific knowledge, interaction with clients or the protection by formal intellectual property rights for an explanation international knowledge sourcing patterns? Did some factors become more important over time?
- How much local embeddedness in the host country does international knowledge sourcing need? How strong are the ties for foreign-owned subsidiaries to universities in host country? What is the role of localized knowledge in innovation hot-spots and other agglomerations for the process? How relevant is the knowledge base and specialisation of the home country for these activities?
- What is the connection between international knowledge sourcing and the fragmentation of production and global value chains?
- How have information and communication technologies facilitated the internationalisation of R&D? Can we see new patterns of international co-operation emerging from these technologies?
- Do geographical patterns change with new industries emerging as players of R&D internationalisation? In particular, do software and internet companies such as Facebook, Alphabet, or Microsoft favour different locational factors and host countries than manufacturing firms?
References
- Ascani, A., Crescenzi, R., Iammarino, S., 2016. Economic Institutions and the Location Strategies of European Multinationals in their Geographic Neighborhood. Economic Geography 92, 401-429. 10.1080/00130095.2016.1179570
- Cantwell, J., Iammarino, S., 2000. Multinational Corporations and the Location of Technological Innovation in the UK Regions. Regional Studies 34, 317-332.
- Ciabuschi, F., Kong, L., Su, C., 2017. Knowledge sourcing from advanced markets subsidiaries: political embeddedness and reverse knowledge transfer barriers in emerging-market multinationals. Industrial and Corporate Change 26, 311-332. 10.1093/icc/dtx001
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