Explaining 'Inertia' in R&D internationalisation: Norwegian firms and the role of home country-effects

We ask why firms from certain countries show a higher propensity to centralise their R&D activities athome than firms from other countries, using the example of Norway. We highlight that it is the interplaybetween the industrial structure and political and economic orientation of the home economy that plays animportant role in how firms engage in both home and overseas activities, including R&D. In general, nationalsystems of innovation (NSI) and industrial and technological specialisation of countries changes only verygradually, and – especially in newer, rapidly evolving sectors - much more slowly than the technological needsof firms. Thus, firms must either import and acquire the technology they need from abroad, or venture abroadand seek to internalise aspects of other countries’ NSI. In the case of Norway, two groups of firms exist. The firstgroup are large firms in traditional sectors, that are highly embedded, and around whom the Norwegian NSI hasbeen built, and which have a low level of R&D internationalisation. The second group of firms are SMEs inscience based sectors who are (slowly) expanding R&D abroad to seek competences in technologies notavailable domestically. The low R&D internationalisation of both groups reflects their embeddedness in thedomestic NSI, which has acted as a powerful centripetal force, creating a technological and organisationalinertia.