The Internationalization of Corporate R&D

THE INTERNATIONALIZATION OF CORPORATE R&D2.5 Internationalization of Corporate R&D – Summary ofTrendsThe discussion in this chapter of concepts, measurement issues, trends and driversrelated to the internationalization of corporate R&D serves as a background andframework for the chapters that follow. A few important trends can be highlighted fromthis overview:• A growing share of corporate R&D is undertaken abroad. R&D is still less internationalizedthan production.• Most R&D internationalization takes place within the Triad (the U.S., Europeand Japan).• European companies, especially from smaller countries, are more internationalizedthan U.S. and Japanese companies.• The U.S. is the major location for foreign R&D. Japanese companies are the leastinternationalized and Japan is the least favored location within the Triad.• Sweden is one of the most internationalized countries within the OECD.• High-tech industrial sectors, such as the pharmaceutical and communicationsindustry, are most internationalized.• More recently, developing countries are attracting corporate R&D. The increase indeveloping Asia (China and India) is the most dramatic.• Multinational companies are planning increases in R&D investment in developingAsia, while not increasing, and sometimes even decreasing, at home.• The development of global information and telecommunications networks andmodularized innovation processes are key enablers of internationalization.• Adaptive R&D is still the dominating form among foreign R&D units, but innovativeR&D is increasing.• Access to technologies and skilled researchers and engineers are becoming increasinglyimportant motives for R&D localization.• The share of greenfield investment in R&D is increasing compared to the acquisitionof existing foreign R&D facilities.• Foreign R&D is becoming more integrated into the overall R&D strategies ofmultinational companies, forming global innovation networks.81