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The Internationalisation of R&D by Multinationals: A Trade-off between External and Internal Proximity

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  • Blanc, Helene
  • Sierra, Christophe

Abstract

Overseas production is frequently seen as a force inducing the decentralization of R&D. A complementary explanation can be provided if we admit that the acquisition of knowledge is one of the key factors behind the internationalization of R&D. Multinational firms which adopt such a technology-oriented posture must create an external organization that is designed to scan and absorb external scientific and technological capabilities, a process which the authors refer to as a quest for 'external proximity.' However, the multinational firm's external organization should not be constituted to the detriment of its organizational coherence; it should, on the contrary, be completed by the implementation of relations of proximity internal to the firm, which they refer to as 'internal proximity.' From this perspective, the multinational firm that manages dispersed R&D units is seen as facing a tension--an organizational trade-off--between external proximity and internal proximity. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Blanc, Helene & Sierra, Christophe, 1999. "The Internationalisation of R&D by Multinationals: A Trade-off between External and Internal Proximity," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 187-206, March.
    • Handle: RePEc:oup:cambje:v:23:y:1999:i:2:p:187-206
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