The Globalization of Corporate R & D

The Internationalization of Corporate R&D: A Review of the Evidence and Some Policy Implications for Home Countries1

“…Even more notable is the fact that R&D expenditures in this group increased by an average annual rate of 15.9 percent (in real terms), as compared with a 6.9 percent growth for the aggregate of all host countries (National Science Board, 2004). By 2004, more than 100 MNEs had set up R&D facilities in India, while as many as 700 had set up such facilities in China (Reddy, 2000; UNCTAD, 2005, p. 141).…”

Chip design in China and India: Multinationals, industry structure and development outcomes in the integrated circuit industry

“…The qualitative grounded theory approach provides opportunities to create new understandings rather than a method to provide rigorous, empirical testing of existing theories, an area where various quantitative methods may be more useful. While others have studied China and India in the context the globalization of R&D [33,35,39] and the globalization of the IC sector specifically [10], there has not been a comparative analysis of the evolution of Indian and Chinese IC design that incorporates opening up the "black box" of the firms to investigate how design is organized in the MNCs and domestic firms in order to conceptualize how each country's industry structure and skills have evolved over time.…”

“…1 IC design has been a success in each country despite predictions of substantial differences in sectoral success and specialization of each country [5,8] assumed to be due to the generally acknowledged different development paths outlined above. One could argue that this success is not surprising in the context of the globalization of R&D [39] and the increasing allure of the pools of talent in China and India [35], especially if one accepts the argument that IC design is on the leading edge of offshoring of R&D [10]. One might reasonably expect sectoral isomorphism to make the two countries' development paths in this sector more similar if the two countries become active participants in IC design.…”

“…Both China and India have attracted R&D investments from multinationals as part of the globalization of R&D [39] and IC design is at the forefront of the globalization of R&D [10]. The two countries have taken quite different routes in this sector and these routes have been formed by co-evolution between the domestic institutional arrangements and the opportunities offered within the global IC design industry, particularly opportunities made available by multinationals.…”

“…These two Asian giants have taken quite different routes in IC design despite the ongoing globalization of R&D in which China and India play major roles [3,35,39]. This article will assess the routes from two different angles: each country's relationship to the globalization of IC design R&D by multinational corporations (MNCs), and the organizational structure of each country's industry.…”