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Sources of open innovation in foreign subsidiaries: An enriched typology

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  • De Beule, Filip
  • Van Beveren, Ilke

Abstract

This paper analyzes the drivers of multinational affiliates’ innovation, using a dataset based on the Community Innovation Survey for Belgium. Specifically, we investigate the role of external knowledge sources on foreign affiliates’ research efforts and innovation. We thereby develop an enriched typology by taking both the MNC and the host country perspective into consideration and distinguish between different types of subsidiaries, in order to disentangle differences in the use of knowledge sources between technology exploiting, seeking and creating subsidiaries. Our findings show that technology-creating foreign affiliates are able to tap into a combination of industry-based value chain partners and science-based partners. In particular, a combination of clients and universities have a powerful impetus on the research effort of technology creating firms. Our results also indicate that technology-seeking subsidiaries make more use of collaboration with competitors. Technology exploiting subsidiaries make significantly less use of external knowledge sources and have a lower R&D intensity.

Suggested Citation

  • De Beule, Filip & Van Beveren, Ilke, 2019. "Sources of open innovation in foreign subsidiaries: An enriched typology," International Business Review, Elsevier, vol. 28(1), pages 135-147.
    • Handle: RePEc:eee:iburev:v:28:y:2019:i:1:p:135-147
    DOI: 10.1016/j.ibusrev.2018.08.005
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    5. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
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    7. Conroy, Kieran M. & Jacobs, Simon & Liu, Yang, 2023. "The dual knowledge role of open innovation intermediaries: Internal weaving and external filtering for MNE subsidiaries," Technovation, Elsevier, vol. 123(C).
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    11. Rammal, Hussain G. & Rose, Elizabeth L. & Ferreira, João J., 2023. "Managing cross-border knowledge transfer for innovation: An introduction to the special issue," International Business Review, Elsevier, vol. 32(2).
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    14. Tomasz Gołębiowski & Małgorzata Stefania Lewandowska & Małgorzata Rószkiewicz, 2019. "Subsidiaries’ dual embeddedness and innovation-related competitive advantage," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 5-30.
    15. Figueiredo, Paulo N. & Larsen, Henrik & Hansen, Ulrich E., 2020. "The role of interactive learning in innovation capability building in multinational subsidiaries: A micro-level study of biotechnology in Brazil," Research Policy, Elsevier, vol. 49(6).
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    More about this item

    Keywords

    Technology exploiting; Technology exploring; R&D intensity; Multinational subsidiaries; Open innovation; Knowledge sources;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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