The Internationalization of Corporate R&D

THE INTERNATIONALIZATION OF CORPORATE R&Dsearchers and engineers are moving up the value chain. Engineering-associated occupationsare especially vulnerable to competition from other countries, and it is likelythe region will see further job losses of this type in the future.What is the response from policymakers and others?There has been no direct response from California policymakers addressing the concernsof offshoring R&D. However, a number of indirect responses can be explained,at least in part, as responses to pressure from global competition and internationalization.These indirect responses in California are mainly directed towards creating amore favorable R&D climate in the state, and promoting programs that target thosehigh-technology sectors in which Silicon Valley specializes.What does the future of the region look like?Silicon Valley seems to be prepared to meet the challenges of internationalization ofcorporate R&D. The region’s ability to manage and integrate business relationshipsacross company and country borders is a competitive advantage in a globalized economy.The Bay Area and Silicon Valley region is poised to become a global nexus forR&D networks.8.7.2 Implications for SwedenThere are some similarities between Silicon Valley and Sweden. For example, both economiesare high technology-driven with similar industries, both are already heavily globalizedand both already make large investments in R&D. What can Sweden learn from SiliconValley’s experience with internationalizing R&D activities? This section will describe somepotential implications and issues for Swedish policymakers to consider.Continue Monitoring DevelopmentsIt is important for Sweden to monitor those developments driven by internationalizationin successful, innovative, high technology-driven regional economies likeSilicon Valley, and to learn about these developments in general and to identify possibleimplications for Sweden at an early stage. Early detection can lead to early andproactive responses from policy makers.Attract Foreign TalentIn Silicon Valley, immigrants with connections to their home countries play an importantrole in developing the region’s economy, including the internationalization of corporateR&D. Sweden could take advantage of similar possibilities. Attracting foreign talent fromnearby emerging economies, like Russia and Eastern Europe, could add new talent to theSwedish universities and to the labor pool (in particular in science and technology). Thisin turn would create better network linkages to these emerging markets.202