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Innovation: Management, Policy & Practice

Publication date: 2012-06-01
Volume: 14 Pages: 192 - 202
Publisher: EContent Management Pty Ltd

Author:

Wang, Jian
Xue, Lan ; Liang, Zheng

Keywords:

Social Sciences, Management, Business & Economics, multinational R&D, home-based, host-based technology advancer, host-based system owner, host-based local integrator, China, FOREIGN DIRECT-INVESTMENT, RESOURCE-BASED VIEW, DEVELOPMENT LABORATORIES, SWEDISH MULTINATIONALS, COMPETITIVE ADVANTAGE, INNOVATION, KNOWLEDGE, FIRMS, GLOBALIZATION, TECHNOLOGY

Abstract:

Current research on multinational R&D assumes that main R&D is based in the home country and views overseas R&D as additional to the home base. However, case studies in China have found that the base itself is also internationalized. Besides home-based-augmenting, home-based-exploiting, and home-based-replacing discussed in the literature, we have identified new types of host-based overseas R&D. Two of these are the host-based technology advancer, which focuses on original component innovation, and the host-based system owner, which focuses on system innovation. Both respond to local market opportunities. In addition, multinationals establish host-based local integrators to coordinate their R&D centers under different firm divisions. These findings suggest four topics for future research. Copyright © eContent Management Pty Ltd.