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Offshore knowledge incubation: the "third path" for embedding R&D labs in foreign systems of innovation

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  • Lehrer, Mark
  • Asakawa, Kazuhiro

Abstract

Offshore knowledge incubation (OKI) denotes the effort by foreign R&D units of MNCs to achieve local embeddedness within the host-country R&D system, even at the expense of remaining detached from the rest of the MNC. An open-ended social interaction and learning process, OKI can be seen as a novel path of MNC subsidiary evolution. In a qualitative study of eight European "knowledge incubators," the concept was found to be useful for analyzing the adjustment in R&D strategies of Japanese firms venturing into basic research abroad and of U.S. information technology companies coping with the turbulent IT environment of the 1990s.

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  • Lehrer, Mark & Asakawa, Kazuhiro, 2002. "Offshore knowledge incubation: the "third path" for embedding R&D labs in foreign systems of innovation," Journal of World Business, Elsevier, vol. 37(4), pages 297-306, January.
    • Handle: RePEc:eee:worbus:v:37:y:2002:i:4:p:297-306
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    2. Alberto Di Minin & Jieyin Zhang, 2010. "An Exploratory Study on International R&D Strategies of Chinese Companies in Europe," Review of Policy Research, Policy Studies Organization, vol. 27(4), pages 433-455, July.
    3. Dau, Luis Alfonso, 2018. "Contextualizing international learning: The moderating effects of mode of entry & subsidiary networks on the relationship between reforms & profitability," Journal of World Business, Elsevier, vol. 53(3), pages 403-414.
    4. Di Minin, Alberto & Zhang, Jieyin & Gammeltoft, Peter, 2012. "Chinese foreign direct investment in R&D in Europe: A new model of R&D internationalization?," European Management Journal, Elsevier, vol. 30(3), pages 189-203.
    5. Asakawa, Kazuhiro & Lehrer, Mark, 2003. "Managing local knowledge assets globally: the role of regional innovation relays," Journal of World Business, Elsevier, vol. 38(1), pages 31-42, February.
    6. Deephouse, David L. & Newburry, William & Soleimani, Abrahim, 2016. "The effects of institutional development and national culture on cross-national differences in corporate reputation," Journal of World Business, Elsevier, vol. 51(3), pages 463-473.
    7. Lehrer, Mark & Almor, Tamar, 2022. "Startups internationalizing in quest of a business model: The global prospecting of process niche firms," Journal of International Management, Elsevier, vol. 28(1).
    8. Schmid, Stefan & Dzedek, Lars R. & Lehrer, Mark, 2014. "From Rocking the Boat to Wagging the Dog: A Literature Review of Subsidiary Initiative Research and Integrative Framework," Journal of International Management, Elsevier, vol. 20(2), pages 201-218.
    9. Chen, Chung-Jen & Huang, Yi-Fen & Lin, Bou-Wen, 2012. "How firms innovate through R&D internationalization? An S-curve hypothesis," Research Policy, Elsevier, vol. 41(9), pages 1544-1554.
    10. Jeremiah, Rupin, 2017. "DO FIRMS INNOVATE ABROAD? - The Case of Swedish R&D in India," SSE Working Paper Series in Business Administration 2017:4, Stockholm School of Economics, revised 07 Dec 2017.
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    12. Nell, Phillip C. & Ambos, Bjérn & Schlegelmilch, Bodo B., 2011. "The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks," Journal of World Business, Elsevier, vol. 46(4), pages 497-505, October.

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