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Localisation of product development based on competitive advantage of location and government policies: a case study of car makers in Brazil

Author

Listed:
  • Ugo Ibusuki
  • Hideo Kobayashi
  • Paulo Carlos Kaminski

Abstract

As global competition intensifies, transnational corporations are internationalising even the most knowledge-intensive corporate functions, such as research and development (R%D). Today, corporations in industries such as automobiles are establishing R%D facilities in selected developing countries. They do this to enhance their efficiency, to access expanding pools of scientists and engineers, and to meet the demands in these countries. These recent trends have important implications for the international division of labour and stress the need for coherent national policies to ensure benefits from this evolution. This study aims to identify the localisation of product development activities based on Porter's (1998) diamond model for competitive advantage of location, and Kuchiki's (2005) flowchart approach for government policies. The analysis is based on case studies of automobile assemblers that have headquarters in Triad markets and facilities in Brazil. Brazilian competitive advantages of location are investigated, and implications for host government policies proposed, from the viewpoint of leveraging location specific advantages for R%D localisation.

Suggested Citation

  • Ugo Ibusuki & Hideo Kobayashi & Paulo Carlos Kaminski, 2012. "Localisation of product development based on competitive advantage of location and government policies: a case study of car makers in Brazil," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 12(2), pages 172-196.
  • Handle: RePEc:ids:ijatma:v:12:y:2012:i:2:p:172-196
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    Citations

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    Cited by:

    1. Jesús F. Lampón & Santiago Lago-Peñas & Pablo Cabanelas, 2016. "Can the periphery achieve core? The case of the automobile components industry in Spain," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 595-612, August.
    2. Lampón, Jesús F. & Lago-Peñas, Santiago, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," MPRA Paper 45659, University Library of Munich, Germany.
    3. Lampón, Jesús F. & Lago-Peñas, Santiago, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," MPRA Paper 45659, University Library of Munich, Germany.
    4. Masiero, Gilmar & Ogasavara, Mario Henrique & Jussani, Ailton Conde & Risso, Marcelo Luiz, 2017. "The global value chain of electric vehicles: A review of the Japanese, South Korean and Brazilian cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 290-296.

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