The Internationalization of Corporate R&D

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THE INTERNATIONALIZATION OF CORPORATE R&DAcknowledgementsThis report is the result of teamwork. The authors wish to thank all the people whohave supported the project and contributed to the content of the different studies. Referencegroups and external experts in mainly Sweden, the U.S., India and China havegiven advice and reviewed different parts of the report.The people who have given generously of their time to provide insights, comments andsuggestions on different parts of the studies, includes all the persons we have interviewed(listed at the end of each chapter) and, among others, Ashok D. Bardhan, K. P.Basavaraj, Gautam S. Bhattacharyya, Per-Olof Björk, Pontus Braunerhjelm, RafiqDossani, Karolina Ekholm, Ingemar Eriksson, Torbjörn Fredriksson, Jean Guinet, BoGöransson, Peter Johansson, Martin Kenney, Rishikesha T. Krishnan, Catherine Mann,R. A. Mashelkar, Francisco Moris, Lennart Norgren, Balaji Parthasarathy, Y. S. Rajan,S. Ramani, Sean Randolph, Juho Rissanen, Magnus Runnbeck, Howard J. Shatz, E.Sridharan, N. Suresh, V. Venkatesan, Nicholas Vonortas, Timothy Wedding, ErikWidman, and Leslie Z. Anderson (and her team). Finally we wish to thank our colleaguesat ITPS and VINNOVA.The Authors4
THE INTERNATIONALIZATION OF CORPORATE R&DTable of ContentsSummary.......................................................................................................... 11Sammanfattning.............................................................................................. 19Contributors .................................................................................................... 261 The Challenges of International Corporate R&DMagnus Karlsson...................................................................................... 271.1 Introduction .......................................................................................... 271.1.1 Companies are Creating Global Innovation Networks ...................... 271.1.2 The Changing Geography of Innovation ........................................... 281.1.3 Countries Will Win, Lose and Transform .......................................... 291.1.4 Purpose and Approach of the Studies .............................................. 311.1.5 Outline of the Report......................................................................... 341.2 Structuring a Policy Response: An Overview ....................................... 351.2.1 Strengthen the National Science and Technology Base (A) ............... 371.2.2 Foster Attractive Conditions Based on Knowledge, Production andMarkets (B) ....................................................................................... 401.2.3 Stimulate Internationalization and Mobility (C).................................. 431.2.4 Maximize Economic Benefits and Minimize Negative Effects (D)..... 46References .......................................................................................................... 492 International R&D Trends and DriversMagnus Karlsson...................................................................................... 552.1 Corporate R&D..................................................................................... 552.1.1 What is Corporate R&D? .................................................................. 552.1.2 The Structure of Corporate R&D....................................................... 572.1.3 Corporate R&D Trends ..................................................................... 592.1.4 From Traditional to Distributed Innovation ........................................ 622.2 Internationalization of Corporate R&D.................................................. 632.2.1 What is the Internationalization of Corporate R&D? ......................... 632.2.2 How to Measure Internationalization?............................................... 652.3 The Extent of Internationalization......................................................... 662.3.1 Foreign-Controlled R&D – Inward Investment .................................. 672.3.2 R&D Facilities Abroad – Outward Investment................................... 682.3.3 Trade in R&D – Technology Balance of Payment............................. 692.3.4 Cross-Border Ownership and Co-Ownership of Patents .................. 712.3.5 R&D Collaboration and Alliances...................................................... 722.3.6 Surveys of Foreign R&D Facilities and Projects ............................... 722.3.7 Forward-Looking Surveys................................................................. 752.4 Explaining Internationalization of Corporate R&D .................................... 762.4.1 Enablers of R&D Internationalization................................................... 762.4.2 Drivers of R&D Internationalization................................................... 772.4.3 Determinants for Locating R&D ........................................................ 782.4.4 R&D in Developing Countries – Cost and Other Challenges ............ 802.5 Internationalization of Corporate R&D – Summary of Trends .............. 81References .......................................................................................................... 825
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The Swedish Institute for Growth Po
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