Paradigm Shift in Technologies and Innovation Systems by John Cantwell & Takabumi Hayashi

Author:John Cantwell & Takabumi Hayashi
Language: eng
Format: epub
ISBN: 9789813293502
Publisher: Springer Singapore

7.1 Introduction

The globalization of innovation brings both new opportunities and challenges to all countries. Europe is one of the leaders in this trend, with its European research and innovation programmes (such as Horizon 2020). The other major research, development and innovation (RDI) spenders, multinational companies from many different countries, are also searching for ambitious ideas and partners.

Companies are increasingly opening up their organizational boundaries to tap into external sources of knowledge and to strive for better innovative performance (Berchicci 2013). Multinational companies (MNCs) have substantially expanded their global innovation networks, and their aim to collaborate with universities located abroad has been identified as one of the main drivers of the internationalization of their research and development (R&D) centres.

Although the internationalisation of R&D through FDI is not a new phenomenon, its rapid growth and scope have changed dramatically (Raymond and Taggart 1998; Cantwell and Molero 2003; Narula 2014; Foray 2006). The purchase or outsourcing of R&D (whether domestically or internationally) is now a serious complement to in-house R&D as a part of corporate innovation strategy (OECD 2008a; EU 2005).

The globalisation of R&D affects more the R&D intensive sectors which are key players in disruptive technologies such as artificial intelligence, big data, block-chains, genome editing, robotics, drones, 3D printing, the Internet of Things, and autonomous vehicles (OECD 2017). The new era of disruptive technologies often named as the Fourth Industrial Revolution (Industry 4.0) is still in its infancy, but its effects are already having an impact on the nature of competition and corporate strategies in many industries. Industry 4.0, as well as upgrading internationalisation, is pushing the actors of the national innovation system (NIS) towards self-transformation and collaboration to capture new opportunities.1

Collaborative research involving businesses and universities has a long history, although its intensity, character and the types of business partner are changing in the twenty-first century. There is no single model of interaction between industry and science. The formal and informal channels of collaboration differ by country and time (Bonaccorsi and Piccaluga 1994; Inzelt 2004). Some countries pay more attention to one particular channel than do others.

In collaboration the role of MNCs differs in line with the home- or host-country’s perspective. The main drivers of the internationalization of R&D from a home-country’s perspective are the opportunities for global sourcing and pooling, which may increase the capacity of scientific excellence, optimize the innovation process and find effective solutions to global changes.2 Traditional cross-border R&D sought to adapt products and services to the needs of the host countries and to support the foreign investors’ local operations. In this case, host-countries can benefit from the presence of foreign-owned firms in their research, development and innovation (RDI) activities. The MNCs which are burdening their markets may contribute to increase R&D expenditure and knowledge spill-overs in host countries. However they hardly broaden R&D opportunities for domestic universities for collaboration with industry.

Contemporary multinational companies seek the opportunities to generate new knowledge in other countries. They need more and more access to highly skilled scientific personnel and to tap into worldwide centres of knowledge (Edler 2008; Inzelt 2008; Taggart 1998).

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