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Developing new innovation models: Shifts in the innovation landscapes in emerging economies and implications for global R&D management

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Author Info

  • Li, Jiatao
  • Kozhikode, Rajiv Krishnan
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    Abstract

    Over the past two decades, there has been a substantial shift in the global innovation landscape. Multinationals from developed economies are increasingly globalizing their R&D activities and are developing an "open innovation" model to source innovations from outside the firm, including from emerging economies such as those in Asia. In addition, emerging economy firms, which traditionally have played a secondary role in the global innovation landscape, have now begun to catch up in developing their own innovative capabilities. This study explores the implications of this new innovation landscape for CEOs of multinationals and emerging economy firms, as well as for international management scholars and educators. While the multinationals might appropriate rents from their existing capabilities and source new ones in emerging economies, they may be threatened by weak intellectual property rights regimes and unintended knowledge spillovers to local firms, creating potential competitors. Firms in the emerging economies can learn from and catch up with investing multinationals, but to do so they need to develop their own innovative capabilities and move from a process to a product focus and from imitation to innovation.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 15 (2009)
    Issue (Month): 3 (September)
    Pages: 328-339

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    Handle: RePEc:eee:intman:v:15:y:2009:i:3:p:328-339

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    Related research

    Keywords: Innovation models Global R&D Emerging economy firms;

    References

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    Cited by:
    1. Hou, Wanrong & Li, Sali & Priem, Richard L., 2013. "How do CEOs matter? The moderating effects of CEO compensation and tenure on equity ownership in international joint ventures," Journal of International Management, Elsevier, vol. 19(2), pages 138-151.
    2. Lehrer, Mark & Asakawa, Kazuhiro & Behnam, Michael, 2011. "Home base-compensating R&D: Indicators, public policy, and ramifications for multinational firms," Journal of International Management, Elsevier, vol. 17(1), pages 42-53, March.

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