IDEAS home Printed from https://ideas.repec.org/p/ete/msiper/552861.html
   My bibliography  Save this paper

Where to Locate Innovative Activities in Global Value Chains. Does Co-location Matter?

Author

Listed:
  • Rene Belderbos
  • Leo Sleuwaegen
  • Dieter Somers
  • Koen De Backer

Abstract

With the emergence of global value chains (GVCs), production processes are increasingly fragmented and dispersed across different countries. Although many MNEs still exhibit an important ‘home bias’ in their global innovation activities, a growing number of firms have offshored R&D and innovative activities to foreign locations. Is the more recent offshoring of R&D and innovation linked to the prior waves of manufacturing offshoring? The fear in OECD economies is that because of co-location effects between production and innovative activities, the loss of certain manufacturing/assembly activities may result in a loss of innovative capabilities (R&D, design, etc.) in the longer-term. The offshoring of R&D and innovation within GVCs poses new challenges to economic policy in OECD and emerging economies. For example, how can countries attract inward R&D investments by foreign MNEs? Should outward R&D investments by MNEs be a concern for the countries in which the MNEs are headquartered?

Suggested Citation

  • Rene Belderbos & Leo Sleuwaegen & Dieter Somers & Koen De Backer, 2016. "Where to Locate Innovative Activities in Global Value Chains. Does Co-location Matter?," Working Papers of Department of Management, Strategy and Innovation, Leuven 552861, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    • Handle: RePEc:ete:msiper:552861
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/retrieve/407327
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patrick Cohendet & David Grandadam & Chahira Mehouachi & Laurent Simon, 2018. "The local, the global and the industry common: the case of the video game industry," Journal of Economic Geography, Oxford University Press, vol. 18(5), pages 1045-1068.
    2. Amendolagine, Vito & Chaminade, Cristina & Guimón, José & Rabellotti, Roberta, 2019. "Cross-border knowledge flows through R&D FDI: Implications for low- and middle-income countries," Papers in Innovation Studies 2019/9, Lund University, CIRCLE - Centre for Innovation Research.
    3. Holger Graf & Hoda Mohamed, 2023. "Beyond Trading: Knowledge Spillovers and learning-by-exporting in Global Value Chains," Jena Economics Research Papers 2023-008, Friedrich-Schiller-University Jena.
    4. Albino-Pimentel, João & Dussauge, Pierre & El Nayal, Omar, 2022. "Intellectual property rights, non-market considerations and foreign R&D investments," Research Policy, Elsevier, vol. 51(2).
    5. Smorodinskaya, N. & Katukov, D., 2022. "Russia's opportunities for entering Industry 4.0 markets by improving its position in distributed production," Journal of the New Economic Association, New Economic Association, vol. 53(1), pages 223-231.
    6. Eunkwang Seo & Hyo Kang & Jaeyong Song, 2020. "Blending talents for innovation: Team composition for cross-border R&D collaboration within multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(5), pages 851-885, July.
    7. Ito, Keiko & Ikeuchi, Kenta & Criscuolo, Chiara & Timmis, Jonathan & Bergeaud, Antonin, 2023. "Global value chains and domestic innovation," Research Policy, Elsevier, vol. 52(3).
    8. Bernhard Dachs & Georg Zahradnik, . "From few to many: main trends in the internationalization of business R&D," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    9. Cote, Christine & Estrin, Saul & Shapiro, Daniel, 2020. "Expanding the international trade and investment policy agenda: the role of cities and services," LSE Research Online Documents on Economics 104003, London School of Economics and Political Science, LSE Library.
    10. Smorodinskaya, Nataliya V. (Смородинская, Наталья В.) & Katukov, Daniel D. (Катуков, Даниил), 2017. "Dispersed Model of Production and Smart Agenda of National Economic Strategies [Распределенное Производство И «Умная» Повестка Национальных Экономических Стратегий]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 72-101, December.
    11. Oleksandr Morozov & Yuriy Seniuk, 2018. "What kind of a national innovation system is necessary for the future of Ukraine?," Ukrainian Journal Ekonomist, Yuriy Kovalenko, issue 5, pages 4-21, May.
    12. Pelli, Päivi, 2018. "Services and industrial development: analysis of industrial policy, trends and issues for the forest-based sector," Journal of Forest Economics, Elsevier, vol. 31(C), pages 17-26.
    13. Christine Côté & Saul Estrin & Daniel Shapiro, 0. "Expanding the international trade and investment policy agenda: The role of cities and services," Journal of International Business Policy, Palgrave Macmillan, vol. 0, pages 1-25.
    14. Mariusz-Jan Radło & Ewelina Szczech-Pietkiewicz, 2022. "Role of Metropolis in Regional and Global Dimension of Value-Added Chain: Examples from Warsaw and Its Region," Sustainability, MDPI, vol. 14(21), pages 1-18, October.
    15. Ito, Keiko & Ikeuchi, Kenta & Daiko, Taro, 2021. "Global knowledge flow and Japanese multinational firms’ offshore R&D allocation and innovation," Japan and the World Economy, Elsevier, vol. 59(C).
    16. Eunkwang Seo & Hyo Kang & Jaeyong Song, 0. "Blending talents for innovation: Team composition for cross-border R&D collaboration within multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-35.
    17. André Cherubini Alves & Bruno Brandão Fischer & Nicholas S. Vonortas, 2021. "Ecosystems of entrepreneurship: configurations and critical dimensions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(1), pages 73-106, August.
    18. 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).
    19. Christine Côté & Saul Estrin & Daniel Shapiro, 2020. "Expanding the international trade and investment policy agenda: The role of cities and services," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 199-223, September.
    20. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.
    21. 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.
    22. Filippo Bontadini & Rinaldo Evangelista & Valentina Meliciani & Maria Savona, 2019. "Integration in Global Value Chains and Employment in Europe," SPRU Working Paper Series 2019-16, SPRU - Science Policy Research Unit, University of Sussex Business School.
    23. Filip De Beule & Dieter Somers & Haiyan Zhang, 2018. "Who Follows Whom? A Location Study of Chinese Private and State-Owned Companies in the European Union," Management International Review, Springer, vol. 58(1), pages 43-84, February.
    24. Davide Castellani, 2017. "The Changing Geography of Innovation and the Role of Multinational Enterprises," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-02, Henley Business School, University of Reading.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:msiper:552861. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: library EBIB (email available below). General contact details of provider: https://feb.kuleuven.be/MSI .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.