Following a wave of off-shoring of manufacturing activities from the OECD countries to developing countries since the 1970s and then of business services, companies in the global North are now considering or implementing the decomposition and relocation of innovation activities to newly industrializing countries or emerging markets, not least in Asia. As innovation is taken to be an increasingly important determinant of corporate competitiveness the academic workshop will address, first, which, how and where innovation activities are off-shored (or not) from OECD countries to developing countries and especially the BRIC countries of Asia. Second, why or under which conditions are these innovation activities off-shored and are this off-shoring especially determined by their linkages to production and/or marketing/sales activities. Third, what are the corporate implications of the off-shoring of innovation activities in terms of organization, management and competitiveness? And finally, what are the innovation-related implications of technology transfer to the Global South? These issues will be debated based on empirical evidence about Danish and other OECD firms involved in global sourcing of innovation activities.
This study investigates the types of international competitive strategies (ICS) followed by Chinese and Indian firms. Using firm-level primary data, the contribution analyses the factors that affect ICS choices and whether these factors differ between the two countries. It argues that firms’ resources and capabilities influence firms’ propensity to choose a specific ICS and that the strategies differ in relation to firms’ location, sector and destination market as well.
Since the seminal work of Archibugi and Michie (1995) on the globalization of innovation, several authors have attempted to understand the complex relationship between innovation and internationalization. However, most tend to focus on industrialized countries, just one mode of globalization of innovation and often one traditional indicator of innovation, such as patents or R&D investment, thus ignoring the complexity and multiple aspects of the phenomenon. This paper explores empirically the linkages between different modes of globalization of innovation and firms’ micro-characteristics in two of the fastest growing emerging economies. We analyze three distinct modes of globalization of innovation: the global exploitation of innovation, the global sourcing of technology and global research collaboration. We then use primary data from Chinese and Indian firms belonging to three sectors (automotive components, software and green biotech) to explore the differences in the ways in which the firms located in these two economies globalize their innovation activities.
A number of influential international organizations recently have issued publications that discuss the promotion of sustainable development in international investment. These organizations include the United Nations, UNCTAD, FAO, IFAD, the UNCTAD Secretariat, and the World Bank Group, the Commonwealth Secretariat, the Organisation for Economic Co-operation and Development (OECD), the International Chamber of Commerce (ICC), and the South African Development Community (SADC).
These publications evince two theoretically distinct, but complementary, approaches to the promotion of sustainable development in international investment: