The Internationalization of Corporate R&D

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THE INTERNATIONALIZATION OF CORPORATE R&D• Maintain a forward-looking and long-term perspective. Many of the internationalizationprocesses described in this report might develop over a relatively long periodof time. A time frame of at least 10 to 20 years is necessary, as the structure ofinternational corporate R&D and the configuration of national innovation systemsare changing fairly slowly. However, for reasons described above, it is worth takingthe early signs we see seriously.• Integrate policy measures in a mutually reinforcing way. A systematic approachshould include policy measures at all the levels and policy domains described inChapter 1, and should build on current Swedish policy initiatives (for exampleRegeringskansliet 2004, 2005a, 2005b, 2005c, and ongoing studies and inquiries,such as KAKI 2004, SOU 2005:95 and Regeringskansliet 2006). The policy responseshould include a collaborative approach involving all relevant actors in theSwedish innovation system.Strategies and Policy Measures to ConsiderWhat are the most relevant policy objectives and appropriate policy measures that can(or must) be implemented in Sweden, in order to respond to current and potential challengesof the internationalization of corporate R&D? One can argue that we must focuson all policy domains outlined in Chapter 1 of this report (see Figure 12-2).Figure 12-2 Illustrative structure of policy measures in four different levels or domains, inresponse to the internationalization of corporate R&D.D. Maximizeeconomic benefitsD1. Stimulatedownstream economicactivitiesD2. Support thetransition for individualsand regionsC. Stimulateinternationalizationand mobilityC1. Attract foreignR&D activitiesC2. Internationalizedomestic companiesC3. Attract foreigntalent andincrease mobilityB. FosterattractiveconditionsB1. ExcellentR&D conditionsB2. ProductionstructuresB3. Attractiveleading marketsA. Strengthenthe nationalS&T baseA1. Investmentsin S&TA2. Investmentsin talentA3. Infrastructureand regulationsSource: ITPS.318
THE INTERNATIONALIZATION OF CORPORATE R&DIt is possible to make a long list of known policy measures designed to: strengthen thenational science and technology base; foster attractive conditions for knowledge-intensiveactivities, production and leading markets; stimulate internationalization and the mobilityof talent; and maximize economic benefits from corporate R&D activities. How can weselect the vital few that must be given specific attention in the Swedish setting?Swedish-controlled multinational companies responded in a survey (ITPS 2005) thattax reduction measures (especially for foreign experts) and various forms of financialsupport were the most important policy instruments to attract and maintain R&D investmentsin Sweden. Support for higher education and collaboration between universities,institutes and industry were also high on their list of recommendations. For foreign-controlledmultinational companies in Sweden, the most important policy measureswere: increased government funding for research at universities and institutes(including applied research) and incentives to attract foreign experts and students. Seealso, for example, Karlsson 2004, Teknisk Framsyn 2004, NIFU 2005 and Andersson& Friberg 2005 for policy issues to consider.Based on the studies in this report and the current Swedish policy context, we would liketo point out five specific areas that need particular attention and additional resources inorder to address the challenges raised by the internationalization of corporate R&D:1. Ensure the Quality of the Swedish Education and Research SystemA strong science and technology base is the foundation for attracting foreign R&D activitiesand for competitiveness. A priority for the government should continue to bemaking available R&D resources in order to ensure the quality of the education and researchsystem. In addition, stronger industrial research institutes could serve as a bridgebetween domestic and foreign corporate R&D environments and encourage the exchangeof researchers and engineers in certain sectors. Internationally competitive research institutealliances could be established, for example, between the Nordic countries.2. Create Conditions for Excellent R&D and Innovation EnvironmentsFocus more resources on, and create better conditions for, excellent R&D and innovationenvironments in disciplines and industry sectors where Sweden has an internationallycompetitive advantage. Identify R&D clusters where the co-location of nicheproduction is an advantage, or where specialized leading markets are served. This requiresfurther embracing specialization and the global division of knowledge-intensivework. Identify areas and types of R&D activities that are desirable to keep at home andthose that can be sourced worldwide.319
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