Determinants of Internationalisation of Corporate Technology
AbstractBased on empirical data at an aggregate level it has been argued that the propensity to internationalise corporate technological activity is higher among firms originating from smaller countries and in less research-intensive industries. However, more disaggregated evidence on the patenting of the world’s largest firms suggests a more complex picture. First, the share of foreign-located activity (through outward investment) depends positively upon the technological strength of each national group of firms in an industry, while the share of foreign-owned activity (through inward investment in a host country) may be deterred by the technological competitiveness of indigenous firms. The degree of internationalisation of technological development depends inversely as well on the extent of localised user-producer interaction in innovation in an industry or in the relevant national innovation system. Second, the largest firms increasingly use international research networks as a means of corporate technological diversification. Thus, when technologically leading groups invest in innovation abroad they tend to switch towards the foreign development of complementary and supporting technologies outside the primary field of their own industry, which tends to remain relatively more concentrated at home. Likewise, while foreign-owned firms in the same industry may be deterred by the intensity of competition in the home centre of a leading national group, strong foreign-owned firms in other industries may pursue their diversification strategies by developing locally the primary technology of that centre (which is not primary for their own industry).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 01-08.
Date of creation: 2001
Date of revision:
Contact details of provider:
Web page: http://www.druid.dk/
Internationalisation; technological development;
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zvi Griliches, 1998.
"Patent Statistics as Economic Indicators: A Survey,"
in: R&D and Productivity: The Econometric Evidence, pages 287-343
National Bureau of Economic Research, Inc.
- Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
- Zvi Griliches, 1990. "Patent Statistics as Economic Indicators: A Survey," NBER Working Papers 3301, National Bureau of Economic Research, Inc.
- Cantwell, John & Piscitello, Lucia, 2000. "Accumulating Technological Competence: Its Changing Impact on Corporate Diversification and Internationalization," Industrial and Corporate Change, Oxford University Press, vol. 9(1), pages 21-51, March.
- John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 461-491, September.
- Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-74, February.
- Cantwell, John & Janne, Odile, 1999. "Technological globalisation and innovative centres: the role of corporate technological leadership and locational hierarchy1," Research Policy, Elsevier, vol. 28(2-3), pages 119-144, March.
- Cantwell, John, 2000. "Technological lock-in of large firms since the interwar period," European Review of Economic History, Cambridge University Press, vol. 4(02), pages 147-174, August.
- repec:fth:harver:1473 is not listed on IDEAS
- Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
- Cantwell, John & Santangelo, Grazia D., 1999. "The frontier of international technology networks: sourcing abroad the most highly tacit capabilities," Information Economics and Policy, Elsevier, vol. 11(1), pages 101-123, March.
- Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
- John Cantwell & Grazia D. Santangelo, 2000. "Capitalism, profits and innovation in the new techno-economic paradigm," Journal of Evolutionary Economics, Springer, vol. 10(1), pages 131-157.
- John Cantwell, 1987. "The Reorganization of European Industries After Integration: Selected Evidence on the Role of Multinational Enterprise Activities," Journal of Common Market Studies, Wiley Blackwell, vol. 26(2), pages 127-151, December.
- Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, vol. 28(2-3), pages 179-193, March.
- Breschi, Stefano & Lissoni, Francesco & Malerba, Franco, 2003. "Knowledge-relatedness in firm technological diversification," Research Policy, Elsevier, vol. 32(1), pages 69-87, January.
- Achcaoucaou, Fariza & Miravitlles, Paloma & León-Darder, Fidel, 2014. "Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness," International Business Review, Elsevier, vol. 23(1), pages 76-90.
- Ruth Rama, 2008. "Foreign investment innovation: a review of selected policies," The Journal of Technology Transfer, Springer, vol. 33(4), pages 353-363, August.
- Rajneesh Narula & Grazia D. Santangelo, 2007.
"Location and R&D Alliances in the European ICT Industry,"
DRUID Working Papers
07-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Narula, Rajneesh & Santangelo, Grazia D., 2007. "Location and R&D alliances in the European ICT industry," MERIT Working Papers 008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Rajneesh Narula & Grazia D. Santangelo, 2007. "Location and R&D alliances in the European ICT industry," Centre for International Business Strategy Working Papers cibs-wp2007-01, Henley Business School, Reading University.
- Rajneesh Narula & Grazia D. Santangelo, 2007. "Location and R&D alliances in the European ICT industry," Economics & Management Discussion Papers em-dp2007-43, Henley Business School, Reading University.
- Michel, Julie, 2007. "The effects of FDI in R&D on home countries, the case of Switzerland," MPRA Paper 6400, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keld Laursen).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.