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Globalization of innovation: the moderating role of project-level investment strategy and country type in location choice for R&D-related FDI

Globalization of innovation: the moderating role of project-level investment strategy and country type in location choice for R&D-related FDI

Authors :
Peter D. Ørberg Jensen
Søren Feodor Nielsen
Stine Jessen Haakonsson
Eliane Choquette
Source :
Choquette, E, Jessen Haakonsson, S, D. Ørberg Jensen, P & Feodor Nielsen, S 2021, ' Globalization of Innovation: The Moderating Role of Project-Level Investment Strategy and Country Type in Location Choice for R &D-Related FDI ', Transnational Corporations, vol. 28, no. 2, pp. 1-30 . < https://unctad.org/system/files/non-official-document/diaeia2021d2a1_en.pdf >
Publication Year :
2021
Publisher :
United Nations Publications, 2021.

Abstract

The current stage of globalization involves geographically dispersed research anddevelopment (R&amp;D) investments that are not confined to advanced economies.These cross-border R&amp;D investments are driven by multinational enterprises’(MNEs’) strategies for exploring and/or exploiting foreign locations. In this paper,we analyse location choice and the moderating effect of project-level investmentstrategy (i.e. exploration or exploitation) and type of host economy (i.e. advancedor emerging) on the importance of the innovation framework and local innovationcapabilities. Our analysis of 588 R&amp;D-related foreign direct investment (FDI) projectsin the pharmaceutical and biotech industries during the 2006–2016 period revealsthat whereas a host country’s innovation framework and capability overall do affectthe location decision, their ultimate effects are conditional on the combination ofproject-level investment strategy and type of economy. Our findings have policyimplications for FDI policies aiming at enhancing linkages between MNEs andlocal actors and national science, technology, innovation and educational policiesand programmes.

Details

ISSN :
2076099X
Volume :
28
Database :
OpenAIRE
Journal :
Transnational Corporations
Accession number :
edsair.doi.dedup.....8480ee27a1e16e7c4fae1f71cf553b50
Full Text :
https://doi.org/10.18356/2076099x-28-2-1