R&D internationalization in asian developing countries: evidence from european multinationals

Author/s Stefano Bresciani, Alberto Ferraris, Manlio Del Giudice
Publishing Year 2016 Issue 2016/3
Language Italian Pages 20 P. 25-44 File size 469 KB
DOI 10.3280/MC2016-003003
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

In the past decade, European companies have turned from using overseas R&D centers simply to localize products, to tapping them as a source of R&D for products globally. Today, many European MNEs have R&D activities at different locations inside and outside their domestic markets and this phenomenon is even more relevant in the developing Asian countries. The aim of this paper is to highlight the R&D internationalization activities of MNEs from Europe in Asian developing countries. 152 European MNEs has been taken from the list of the largest 500 corporations in the world published annually by Fortune magazine. Thus, using a standardized questionnaire, it has been investigated whether firms follow a knowledge augmenting or knowledge exploiting strategy. The results show a positive relation between the choice to settle R&D units in Asian developing countries and the sale of innovative products there, concluding that firms follow a knowledge exploiting strategy, establishing their whole value chain to Asian developing countries.

Keywords: R&D, Innovation, R&D Internationalisation, Multinational Companies, Asian Developing Countries, HBE

  1. Ronstadt R.C. (1977). Research and Development Abroad by U.S. Multinationals. New York: Praeger Publishers.
  2. Abraham B.P. and Moitra S.D. (2001). Innovation assessment through patent analysis. Technovation, 21(4): 245-252.
  3. Ambos B. and Ambos T.C. (2009). Location choice, management and performance of international R&D investments in peripheral economies. International Journal of Technology Management, 48(1): 24-41.
  4. Ando N. and Ding D.Z. (2014). An integrative institutional approach to MNC performance in China. Asia Pacific Business Review, 20(4): 541-557.
  5. Asakawa K. (2001). Organizational tension in international R&D management: the case of Japanese firms. Research Policy, 30(5): 735-757.
  6. Asakawa A. and Lehrer M. (2003). Managing local knowledge assets globally: the role of regional innovation relays. Journal of World Business, 38(1): 31-42.
  7. Asakawa K. and Som A. (2008). Internationalization of R&D in China and India: conventional wisdom versus reality. Asia Pacific Journal of Management, 25(3): 375-394.
  8. Bartlett C.A., and Ghoshal S. (1986). Tap your subsidiaries for global reach. Harvard Business Review, 64: 87-94.
  9. Bartlett C. and Ghoshal S. (1990). Managing Innovation in the Transnational Corporation. In: Managing the Global Firm, edited by Bartlett C., Doz Y., and Hedlund G., 215-255. London: Routledge.
  10. Belderbos R. (2001). Overseas innovations by Japanese firms: an analysis of patent and subsidiary data. Research Policy, 30(2): 313-332.
  11. Belderbos R., Carree M., Diederen B., Lokshin B. and Veugelers R. (2004). Heterogeneity in R&D cooperation strategies. International journal of industrial organization, 22 (8): 1237-1263.
  12. Belderbos R. (2006). R&D Activities in East Asia by Japanese European, and US Multinationals. Jcer Discussion Paper No.100. Paper for presentation at the Conference, Japan Center for Economic Research, Tokyo, June 1.
  13. Belderbos R., Leten B., and Suzuki S. (2009). Does Excellence in Scientific Research attract foreign R&D? UNU-Merit Working Paper, UNU-MERIT, Maastricht.
  14. Belitz H. (2006). Internationalisation of R&D by Multinationals: The last decade from a German Perspective. Paper Presented at IFSAM VIIIth World Congress Berlin, September 28/30. Bertoli G. and Riccardo R. (2013). Made in Italy e country of origin effect. Mercati e competitività, 2, 13-36.
  15. Blonigen B.A. (2005). A Review of the Empirical Literature on FDI Determinants. NBER Working Paper 11299, Cambridge (MA).
  16. Bohnstedt A., Schwarz C. and Suedekum J. (2012). Globalization and strategic research investments. Research Policy, 41(1): 13-23.
  17. Bresciani S. and Ferraris A. (2012). Imprese multinazionali: innovazione e scelte localizzative, Santarcangelo di Romagna: Maggioli.
  18. Bresciani S. and Ferraris A. (2014). The Localization Choice of Multinational Firms’ R&D Centers: A Survey in the Piedmont Area. Journal of Promotion Management, 20(4): 481-499.
  19. Bresciani S., Vrontis D. and Thrassou A. (2013). Change through Innovation in Family Businesses: Evidence from an Italian Sample. World Review of Entrepreneurship, Management and Sustainable Development, 9(2): 195-215.
  20. Bresciani, S., Thrassou, A., & Vrontis, D. (2015). Strategic R&D internationalization in developing Asian countries-the Italian experience. World Review of Entrepreneurship, Management and Sustainable Development, 11(2-3): 200-216.
  21. Buratti N., Lanzara R. and Simoni M. (2016). Technological innovation and marketing. A multi-perspective analysis. Mercati e competitività, 1, 19-45.
  22. Chaminade C. (2011). Are knowledge bases enough? A comparative study of the geography of knowledge sources in China (Great Beijing) and India (Pune). European Planning Studies, 19(7): 1357-1373.
  23. Chebbi H., Yahiaoui D., Thrassou A. and Vrontis D. (2013). The Exploration Activity’s Added Value Into the Innovation Process. Global Business and Economics Review, 15(2/3): 265-278.
  24. Cohen, W. M., and Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative science quarterly, 35(1): 128-152.
  25. Dachs B., Falk R., Mahroum S., Nones B. and Schibany A. (2005). Policies to benefit from the Internationalisation of R&D. TIP report, Vienna.
  26. Del Giudice M., Carayannis E.G. and Della Peruta M.R. (2012). Culture and cooperative strategies: knowledge management perspectives. In: Cross-cultural knowledge management, 49-62. New York: Springer.
  27. Dunning J.H. (1958). American Investment in British Manufacturing Industry, London: Allen and Unwin.
  28. Dunning J.H. (1988). The eclectic paradigm of international production: a restatement and some possible extensions. Journal of International Business Studies, 19(1): 1-31.
  29. Dunning J.H. and Lundan S.M. (2009). The internationalization of corporate R&D: a review of the evidence and some policy implications for home countries. Review of Policy Research, 26(1/2): 13-33.
  30. Duysters G., Jacob J., Lemmens C. and Yu J. (2009). Internationalization and technological catching up of emerging multinationals: a comparative case study of China’s Haier group. Industrial and Corporate Change, 18(2): 325-349.
  31. Edler J. (2008). Creative internationalization: Widening the perspectives on analysis and policy regarding international R&D activities. The Journal of Technology Transfer, 33(4): 337-352.
  32. Ernst D. (2007). Beyond the ‘global factory’ model: innovative capabilities for upgrading China’s IT industry. International Journal of Technology and Globalization, 3(4): 437-459.
  33. Ferraris A. (2014). Rethinking the literature on “multiple embeddedness” and subsidiary-specific advantages. Multinational Business Review, 22(1): 15-33. Filippaios F., Papanastassiou M., Pearce R., and Rama R. (2009). New forms of organisation and R&D internationalisation among the world’s 100 largest food and beverages multinationals. Research Policy, 38(6): 1032-1043.
  34. Fisch J.H. (2003). Optimal dispersion of R&D activities in multinational corporations with a genetic algorithm. Research Policy, 32(8): 1381-1396.
  35. Florida R. (1997). The globalization of R&D: Results of a survey of foreign-affiliated R&D laboratories in the USA. Research Policy, 26(1): 85-103.
  36. Friedman L.T. (2006). The World is flat. The Globalized World in the Twenty-First Century. England: Penguin Groups.
  37. Gassmann O. and von Zedtwitz M. (1999). New concepts and trends in international R&D organization. Research Policy, 28(2/3): 231-250.
  38. Hedge D. and Hicks D. (2008). The maturation of global corporate R&D: Evidence from the activity of U.S. foreign subsidiaries. Research Policy, 37(3): 390-406.
  39. Hu Y., Scherngell T., Qiu L. and Wang Y. (2015). R&D internationalisation patterns in the global pharmaceutical industry: evidence from a network analytic perspective. Technology Analysis & Strategic Management, 27(5): 532-549.
  40. Hyunbae, C. and Sung-Bae M. (2014). Innovative activities of an incumbent and a potential entrant: an empirical exploration of the role of uncertainty in product and process innovations. Asian Journal of Technology Innovation, 22(2): 219-233.
  41. Jin J., Wang Y. and Vanhaverbeke W. (2014). Patterns of R&D internationalisation in developing countries: China as a case. International Journal of Technology Management, 64(2/4): 276-302.
  42. Karlsson M. (2006). The Internationalization of Corporate R&D: Leveraging the Changing Geography of Innovation. Report Number A2006: 007. ITPS – Swedish Institute for Growth Policy Studies.
  43. Kuemmerle W. (1997). Building effective R&D capabilities abroad. Harvard Business Review, 72(2): 61-70.
  44. Kuemmerle W. (1999a). Foreign direct investment in industrial research in the pharmaceutical and electronics industries-results from a survey of multinational firms. Research Policy, 28(2/3): 179-193.
  45. Kuemmerle W. (1999b). The drivers of foreign direct investment into research and development: an empirical investigation. Journal of International Business Studies, 30(1): 1-24.
  46. Kumar N. (2001). Determinants of overseas R&D activity of multinational enterprises: the case of US and Japanese corporations. Research Policy, 30(1): 159-174.
  47. Lall S. (1979). The International Allocation of Research Activity by US Multinationals. Oxford Bulletin of Economics and Statistics, 41(4): 313-331.
  48. Laurens P., Le Bas C., Schoen A., Villard L. and Larédo P. (2015). The rate and motives of the internationalisation of large firm R&D (1994-2005): Towards a turning point? Research Policy, 44(3): 765-776.
  49. Lewin A.Y., Massini S. and Peeters C. (2009). Why are companies offshoring innovation? The emerging global race for talent. Journal of International Business Studies, 40(6): 901-925.
  50. Mangelsdorf A. and Schmiele A. (2009). Drivers of International R&D to Asian Economies – A Perspective from German Companies. Working Paper. Berlin: BAM Federal Institute for Materials Research and Testing.
  51. Moon S. (2011). What determines the openness of a firm to external knowledge? Evidence from the Korean service sector. Asian Journal of Technology Innovation, 19(2): 185-200. Nepelski D. and De Prato G. (2012). Internationalisation of ICT R&D: a comparative analysis of Asia, the European Union, Japan, United States and the rest of the world. Asian Journal of Technology Innovation, 20(2): 219-238.
  52. Nicotra M., Romano M. and Del Giudice M. (2014). The evolution dynamic of a cluster knowledge network: the role of firms’ absorptive capacity. Journal of the Knowledge Economy, 5(2): 240-264.
  53. OECD. 2010. Measuring Globalisation: OECD Economic Globalisation Indicators 2010. Paris: Organisation for Economic Co-operation and Development.
  54. Oh D., Kim Y.J. and Ahn H. (2010). An analysis of international cooperation in the public research and development programs of Korea. Asian Journal of Technology Innovation, 18(2): 43-67.
  55. Rammer C. and Schmiele A. (2008). Globalisation of Innovation in SMEs: Why They Go Abroad and What They Bring Back Home. Applied Economics Quarterly Supplement, 59(1): 173-206.
  56. Resciniti R. and Matarazzo M. (2012). I nuovi mercati e le strategie di entrata delle medie imprese: evidenze e miti. Sinergie Italian Journal of Management, 89, 209-230.
  57. Safarian A.E. (1966). Foreign Ownership of Canadian Industry. Toronto: McGraw Hill.
  58. Sanna-Randaccio F. and Veugelers R. (2007). Multinational knowledge spillovers with decentralised R&D: a gametheoretic approach. Journal of International Business Studies, 38(1): 47-63.
  59. Schwaag Serger S. and Wise E. (2010). Internationalization of Research and Innovation – new policy developments. Paper presented at the 2010 Concord Conference, Seville.
  60. Simon J.P. (2011). The ICT Landscape in BRICS Countries: Brazil, India, China. Seville: JRC-IPTS.
  61. Song J., Asakawa K. and Chu Y. (2011). What determines knowledge sourcing from host locations of overseas R&D operations? A study of global R&D activities of Japanese multinationals. Research Policy, 40(3): 380-390.
  62. TAFTIE. 2009. Internationalisation of National Innovation Agencies, Stockholm: TAFTIE.
  63. Tardivo G., Bresciani S. and Fabris F. (2011). Internal Dealing And Insider Trading: Focus On Financial Market In Italy Research Findings. Journal of Financial Management and Analysis, 24(1): 24-38.
  64. Thrassou A., Vrontis D., Chebbi H. and Yahiaoui D. (2012). Transcending Innovativeness Towards Strategic Reflexivity. Qualitative Market Research: An International Journal, 15(4): 420-437.
  65. Thursby J. and Thursby M. 2006. Here or There? A Survey of Factors in Multinational R&D Location. Washington: National Academies Press.
  66. UNCTAD. 2015. World Investment Report 2015: Reforming International Investment Governance. Geneva and New York: United Nations.
  67. UNESCO. 2010. Science Report 2010. Paris.
  68. Verbeek A., Shapira P., Edler J., Gagliardi D., Verbeek A., Lykogianni E. and Knell M. (2009). Analysis of R&D international funding flows and their impact on the research system in selected Member States. Brussels: University of Manchester (MIoIR), IDEA Consult, and NIFUSTEP. Von Zedtwitz M. (2005). International R&D strategies in companies from developing countries: the case of China. Globalization of R&D and Developing Countries, 117-140. Geneva: UNCTAD.
  69. Von Zedtwitz M. and Gassmann O. (2002). Market versus Technology Drive in R&D Internationalization: Four different Patterns of Managing Research and Development. Research Policy, 31(4): 569-558.
  70. Vrontis D., Thrassou A. and Ching-Wei H. (2008). The Marketing Implications of the ‘Undesired Self’ – the case of Chinese Y-Generation. Journal for Global Business Advancement, 1(4): 390-408.
  71. Wei Y.H.D., Zhou Y., Sun Y. and Lin G.C.S. (2012). Production and R&D networks of foreign ventures in China: implications for technological dynamism and regional development. Applied Geography, 32(1): 106-118.
  72. Yang Y. (2012). Information and communication technologies industry in China. In: Dancing with the tigers: Asia in the global ICT innovation network, edited by G. De Prato, D. Nepelski, and J.P. Simon, Chandos Publishing.
  73. Zhang J. and Baden-Fuller C. (2010). The influence of technological knowledge base and organizational structure on technology collaboration. Journal of Management Studies, 47(4): 679-704.
  74. Zhang Y., Li H., Hitt M.A. and Cui G. (2007). R&D intensity and international joint venture performance in an emerging market: moderating effects of market focus and ownership structure. Journal of International Business Studies, 38(6): 944- 960.

  • A meta-analysis of international experience and performance: exploring the role of global mobility and national sentiments Di Fan, Sihong Wu, Yiyi Su, Vikas Kumar, in Journal of Knowledge Management /2024
    DOI: 10.1108/JKM-09-2023-0842
  • Innovation and Capacity Building Hande Özek, Alberto Ferraris, pp.207 (ISBN:978-3-319-90944-8)
  • R&D internationalization in medium-sized firms: The moderating role of knowledge management in enhancing innovation performances Alberto Ferraris, Chiara Giachino, Francesco Ciampi, Jerome Couturier, in Journal of Business Research /2021 pp.711
    DOI: 10.1016/j.jbusres.2019.11.003

Stefano Bresciani, Alberto Ferraris, Manlio Del Giudice, R&D internationalization in asian developing countries: evidence from european multinationals in "MERCATI & COMPETITIVITÀ" 3/2016, pp 25-44, DOI: 10.3280/MC2016-003003