The Internationalization of Corporate R&D

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THE INTERNATIONALIZATION OF CORPORATE R&DFigure 5-4 World shares of USPTO ICT patenting, by priority and inventor.5,04,54,03,53,02,52,01,51,00,50,019741976197819801982198419861988199019921994199619982000Australia Canada Denmark FinlandIreland Korea Netherlands Sw edenSource: OECD Patent Database.5.4 ICT Innovation SystemEfficient innovation systems are of critical importance to national technological capabilitiesand long-term economic competitiveness. The innovation-systems perspectivefocuses on generally complex sets of relationships among actors, such as companies,universities and research institutes that develop technology and innovations. Innovationsystems are understood in this study as:The flows of technology and information among people, companies and other organizationsin innovation processes, including the institutional incentives for andinteractions between actors of importance in turning ideas into new value addinggoods, services or processes (OECD 1997). 1111 Innovation systems have been defined slightly differently by different researchers and organizations. Thedefinition used here is based on the OECD definition from 1997 in OECD (1997). It is not, however,identical to the OECD definition. The main difference is that our definition explicitly includes “institutions”as the “rules-of-the-game” generating incentives for different actors. Our definition also emphasizes the“value adding” aspect of innovation.140
THE INTERNATIONALIZATION OF CORPORATE R&DThe innovation systems approach is a way of understanding the important actors innational technological performance and long-term economic competitiveness. It canassist in drawing attention to innovation-related strengths as well as mismatches withindifferent systems, such as industries or countries.Corporate R&D plays a major role in innovation systems. The characteristics, dynamicsand performance of innovation systems have evolved over several decades; they arethe result of interactions between specific industrial and public-sector structures andrelationships. These have been formed both by interaction between the development ofglobal and national demand and competition, and by interaction between private andpublic investments.The challenges for all ICT-producing countries have increased substantially due to therecent global developments. For Sweden it is important to consider the following key,competitiveness policy concerns:• Is the dynamic force of the traditional, Swedish ICT innovation system capable ofgenerating continued competitive innovation and economic performance, or does itneed renewal?• How can the Swedish ICT industry be further strengthened to improve its capacityto profit from global growth and meet the challenges of global competition?• What is the role of innovation policy, and what should be the major policy targetsfor strengthening Swedish ICT industry competitiveness?In the following we attempt to describe the major characteristics of the Swedish ICTinnovation system, both in relation to the historical technological performance of theSwedish ICT industry and in relation to globalization challenges.5.4.1 Globalization ChallengesThe growth of global markets for ICT production and technologies was both the consequenceand a cause of increasing globalization from 1980. For the Swedish ICT innovationsystem, globalization has generated at least five kinds of pressures on Swedishtechnological performance, each with important innovation and economic implications.First, globalization may result in a general narrowing of Swedish technological capabilitiesthrough the increasing business and technology specialization in Sweden-basedmultinational companies. Since these industrial companies lead Sweden in terms oftechnology, international markets and production, they significantly influence the overallperformance of Swedish innovation systems.141
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A2006:007The Internationalizationof
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ITPS, Swedish Institute For Growth
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The Swedish Institute for Growth Po
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