The Internationalization of Corporate R&D: A Review of the Evidence and Some Policy Implications for Home Countries

Review of Policy Research, Vol. 26, No. 1-2, pp. 1-21, 2009

21 Pages Posted: 16 Sep 2011

Date Written: May 16, 2008

Abstract

A review of the existing evidence on the degree of internationalization of the innovative activities of MNEs reveals three main trends. These are the continuing reliance of firms on the home country as a base for innovation, structural changes in MNEs towards more affiliate autonomy, and a small but growing presence of cross-border innovative activities in a group of non-traditional host countries. We argue that these trends pose two interrelated policy challenges for home countries. First, governments need to ensure that the national innovation system enables domestic MNEs to engage in global knowledge sourcing in a way that is complementary to their activities in the home base. Second, the continued importance of publicly funded R&D to corporate innovation implies that home countries, along with MNEs, need to be actively engaged in the standard setting processes in global markets in order to shape an appropriability regime that allows for the effective capture of economic gains from innovation.

Keywords: multinational enterprises, innovation, standard setting

JEL Classification: F23, O32, O38, L15, L24, M16

Suggested Citation

Dunning, John H. and Lundan, Sarianna M., The Internationalization of Corporate R&D: A Review of the Evidence and Some Policy Implications for Home Countries (May 16, 2008). Review of Policy Research, Vol. 26, No. 1-2, pp. 1-21, 2009, Available at SSRN: https://ssrn.com/abstract=1928566

John H. Dunning

Reading University

Whiteknights
Reading, Berkshire RG6 6AH
United Kingdom
+44 0 1491 628 602 (Phone)
+44 0 1491 628 602 (Fax)

Sarianna M. Lundan (Contact Author)

University of Bremen ( email )

FB 7
Hochschulring 4
Bremen, D-28359
Germany

HOME PAGE: http://www.img.uni-bremen.de

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