AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
Asymmetry in knowledge spillovers between technology leading and lagging firms provides incentives for
technology leaders to discourage other firms from setting up new R&D establishments in their vicinity, in order
to reduce the threat of knowledge dissipation. We examine whether the presence of local technology leaders
discourages inward R&D investments, in an analysis of the location of 301 cross-border R&D investment
projects in EU-15 countries at the NUTS-1 regional level, 2003-2008. We identify the strength of industry
technology leaders as dominant players in regional R&D from the concentration of regional patenting activity
among local firms and control for the size of the regional technology cluster. Our preliminary results clearly
indicate that while the strength of local relevant technology clusters attracts cross-border R&D projects,
investors are discouraged by concentration of technology activities by regional industry leaders. Distinguishing
between firms with the largest patent portfolios and firms with smaller patent activity, we find that these effects
are only significant for smaller firms, indicating substantial firm heterogeneity in the responses to technology
clusters and technology concentration. (For more information, please contact: Dieter Somers, Katholieke
Universiteit Leuven, Belgium: dieter.somers@econ.kuleuven.be)
The Dual External Embeddedness of Geographically Distributed R&D
Suma Athreye, Brunel University
Georgios Batsakis, Brunel University
Satwinder Singh, Brunel University
We develop the conjecture that an R&D subsidiary can embed itself in the science base of the home country
(more closely controlled by the parent) and/or the science base of the host country, depending upon the type of
R&D it is mandated to perform, the threat of R&D leakage, strategic considerations of rival firms, and the
characteristics of the host country's business environment and scientific endowments. We test these conjectures
on data obtained from 76 R&D subsidiaries in 14 international locations. Both types of external embeddedness
are important and complementary. Global competitors and location specific advantages have determine the
extent of host country embeddedness, but location specific disadvantages, geographical proximity to the parent
and relative autonomy in subsidiary operations favour external embeddedness in the parent country networks.
(For more information, please contact: Georgios Batsakis, Brunel University, United Kingdom:
georgios.batsakis@brunel.ac.uk)
Dynamic Capabilities and Subsidiary Innovation: Towards an Integrative Framework
Zhan Wu, University of Sydney
Snejina Michailova, University of Auckland
This conceptual paper borrows the concept of dynamic capabilities from the strategic management literature
and applies it to the examination of subsidiary innovation in global context. The paper proposes an integrative
framework which a) differentiates between generative, sourcing and integrative capabilities, b) relates these to
the new proposed construct of dynamic knowledge capability and c) establishes a link between dynamic
knowledge capability and subsidiary innovation. The framework addresses the levels of subsidiary, the
multinational corporation and the host country. A set of theoretical propositions is developed and research and
managerial implications as well as future research are discussed. (For more information, please contact: Zhan
Wu, University of Sydney, Australia: w.zhan@econ.usyd.edu.au)
Session: 3.1.5 - Competitive
Track: 6 - Innovation and Knowledge Mgmt.
Knowledge Creation in the MNE
Presented On: July 3, 2012 - 09:00-10:15
Chair: Anupama Phene, George Washington University
AIB 2012 Conference Proceedings
Page 190