The Internationalization of Corporate R&D

THE INTERNATIONALIZATION OF CORPORATE R&Dimpacts of globalization have generated notable challenges for Swedish ICT competitiveness.As this competitiveness has been firmly based on international excellence intechnological capabilities, these challenges are directly related to the future dynamicsof the Swedish ICT innovation system.After an exceptionally severe crisis in the early 2000s, the Swedish ICT industry hasrecovered in recent years. However, business sector R&D investments and technologicalperformance are stagnating, which should raise concerns about the long-termviability of Swedish ICT capabilities. Moreover, several structural conditions for ICTindustry competitiveness have radically changed in the wake of globalization. As aresult, the historically successful Swedish ICT innovation regime would probably beconsiderably less efficient in relation to the evolving future challenges of the ICT industry.It is suggested that, as the Swedish National Innovation Strategy is further developedand deepened, it should include programs and resources to support the development ofa new ICT innovation regime. Such a strategy should primarily focus on how to developnew long-term, public-private alliances that would ensure international ICT excellence,and how to generate sustainable flows of and growth in R&D-based SMEs.150