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Internationalisation of R&D: New insights into multinational enterprises’ R&D strategies in emerging markets

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  • Haakonsson, Stine Jessen
  • Ujjual, Vandana

Abstract

Multinational enterprises’ research and development (R&D) activities are increasingly internationalised and organised into new types of network, as part of their global innovation networks. In this article, we investigate the dynamics and strategies of R&D reorganisation through an in-depth case study of a global firm from the most globalised industry in terms of R&D, biotechnology. The article investigates dynamics of internationalisation of R&D in global networks by looking at: 1) the strategic drivers of location, either as a large potential market or as a pool of competencies; and 2) the evolution of the company and its R&D activities into emerging market locations: India, China and Brazil. Together, these two dimensions constitute the drivers of R&D internationalisation and contribute to the construction of global innovation networks through knowledge augmenting and exploiting strategies. The article shows how multinational enterprises can use a combination of augmenting and exploiting strategies in emerging markets and hence demonstrates that international R&D activities not always evolve in a sequential and ordered trajectory.

Suggested Citation

  • Haakonsson, Stine Jessen & Ujjual, Vandana, 2015. "Internationalisation of R&D: New insights into multinational enterprises’ R&D strategies in emerging markets," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 26(2), pages 101-122.
    • Handle: RePEc:rai:mamere:mrev-2015-02-haakonsson
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    Citations

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    Cited by:

    1. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    2. Cozza, Claudio & Franco, Chiara & Perani, Giulio, 2018. "R&D endowments at home driving R&D internationalisation: Evidence from the Italian business R&D survey," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 277-289.
    3. Dodourova, Mariana & Zhao, Shasha & Harzing, Anne-Wil, 2023. "Ambidexterity in MNC knowledge sourcing in emerging economies : A microfoundational perspective," Other publications TiSEM b61c5495-162a-4686-9614-0, Tilburg University, School of Economics and Management.
    4. Fatma Halide Kivrak, 2020. "An insight into R&D in emerging countries and prominent concepts within the literature," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 2(1), pages 01-16, January.
    5. Shasha Zhao & Marina Papanastassiou & Robert D. Pearce & Chie Iguchi, 2021. "MNE R&D internationalization in developing Asia," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 789-813, September.
    6. Eliane Choquette & Stine Jessen Haakonsson & Peter D. Ørberg Jensen & Søren Feodor Nielsen, . "Globalization of innovation: the moderating role of project-level investment strategy and country type in location choice for R&D-related FDI," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    7. Dodourova, Mariana & Zhao, Shasha & Harzing, Anne-Wil, 2023. "Ambidexterity in MNC knowledge sourcing in emerging economies: A microfoundational perspective," International Business Review, Elsevier, vol. 32(2).
    8. David Schulzmann & Evis Sinani & Bersant Hobdari & Bent Petersen, . "Drivers of R&D greenfield investment projects in the communications, software and IT service industries in developing countries," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    9. Heike Belitz & Anna Lejpras, 2021. "R&D Internationalization Strategies of the World’s Top Corporate R&D Investors," Discussion Papers of DIW Berlin 1942, DIW Berlin, German Institute for Economic Research.
    10. Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.
    11. Shasha Zhao & Hui Tan & Marina Papanastassiou & Anne-Wil Harzing, 2020. "The internationalization of innovation towards the South: A historical case study of a global pharmaceutical corporation in China (1993–2017)," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 553-585, June.

    More about this item

    Keywords

    internationalisation of R&D; biotech industry; emerging markets; home-base exploiting; home-base augmenting; strategic drivers; evolutionary approach;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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