Does internationalisation of technology determine technological diversification in large firms?

The purpose of the paper is to examine the relationship between technological diversification and internationalisation of technology for large multinational firms, operating at the world technological frontier. More precisely we address the question as to whether internationalisation determines diversification. The analysis is based on a rich database of the European patenting activity of 345 large multinational firms with the highest levels of patenting over two periods of time (1988-1990 and 1994-1996). The relationship is tested using a variety of different regression models. The results show that for the sample as a whole there is no statistically significant relationship between technological diversification and internationalisation of technology. However when the sample is disaggregated according to the predominant internationalisation strategy adopted by a firm, we find a statistically significant relationship. Our results show that in a cross-section of firms adopting a homebase- augmenting strategy, internationalisation determines the level of diversification. Thus amongst such large firms a higher level of internationalisation of technology is associated with a greater level of diversification.multinational firms, technological diversification,internationalisation of technology, patenting

Determinants of Internationalisation of Corporate Technology

Based on empirical data at an aggregate level it has been argued that the propensity to internationalise corporate technological activity is higher among firms originating from smaller countries and in less research-intensive industries. However, more disaggregated evidence on the patenting of the world’s largest firms suggests a more complex picture. First, the share of foreign-located activity (through outward investment) depends positively upon the technological strength of each national group of firms in an industry, while the share of foreign-owned activity (through inward investment in a host country) may be deterred by the technological competitiveness of indigenous firms. The degree of internationalisation of technological development depends inversely as well on the extent of localised user-producer interaction in innovation in an industry or in the relevant national innovation system. Second, the largest firms increasingly use international research networks as a means of corporate technological diversification. Thus, when technologically leading groups invest in innovation abroad they tend to switch towards the foreign development of complementary and supporting technologies outside the primary field of their own industry, which tends to remain relatively more concentrated at home. Likewise, while foreign-owned firms in the same industry may be deterred by the intensity of competition in the home centre of a leading national group, strong foreign-owned firms in other industries may pursue their diversification strategies by developing locally the primary technology of that centre (which is not primary for their own industry).Internationalisation, technological development

Productivity, Growth, and Internationalisation: The Case of German and British High Techs

International engagement is often expected to improve firm performance. Especially for small technology-oriented firms, export activities may be important, being regarded as one way to amortise these firms? high product research and development costs. This paper examines the relationship between international business activities and firm performance using a sample of about 200 young high-tech firms in Germany and the UK that were contacted by two surveys in 1997 and 2003. I find out that the performance enhancing effects of internationalisation that were still observed in 1997 are in fact restricted to an early stage of the firms? life cycles and disappear when technology-oriented firms become mature. The results are in line with many other studies: Firms exhibiting superior performance are or will become exporters. --High technology industries,internationalisation,firm growth,productivity,switching

Timing of international market entry of UK and German high-tech start-ups

We examine the impact of technological product advantages, prior international experience of the management, firm size and age, country differences, and sunk costs as determinants of the timing of international market entry. The timing of internationalisation is analysed using ?event history analysis? for 600 British and German start-up companies in high-technology industries. The results indicate that the incidence of internationalization increases over time. For the majority of new firms the question is not whether the firm will internationalize but when. The analyses indicated that a high commitment to R&D fosters rapid internationalization. The involvement of founder managers who are internationally experienced increases the speed of foreign market activity. Working against rapid internationalization was a high level of product customization. The findings suggest that timing of internationalization is a dynamic process which is influenced by initial human capital endowment, technological advantages, and learning from of day to day activities. --start-ups,high-technology industries,internationalisation

Hidden champions - how young and small technology-oriented firms can attain high export-sales ratios

Determinants of a firm?s export-sales ratio (degree of internationalisation) are frequently discussed in the literature related to individual firms? export activities. Stylised facts show a positive relationship between firm size and firm age on the one hand and the firm?s export-sales ratio on the other hand. However, anecdotic evidence and recent empirical results revealed that it is not size or age per se that leads to a high export-sales ratio. This paper analyses the export-sales ratio of a sample of young technology-oriented firms in Germany and the UK. The empirical results confirm that neither youth nor smallness are necessarily an obstacle to realising a high degree of internationalisation. However, this requires that the firms possess firm-specific assets in order to overcome barriers to entry into the foreign market. These firm-specific assets may be acquired via conducting own R&D activities, buying novel technology from other companies, or by employing internationally experienced managers. --High-technology industries,export-sales ratio,fractional logit model

Internationalisation at a Distance and at Home: Academic and social adjustment in a South African distance learning context

With the rise of technology and distance learning, a recently new type of internationalisation of higher education seems to be emerging in Southern Africa higher education, which we coin as Internationalisation at a Distance. In this empirical study, we aim to provide an initial attempt to theorise this form of Internationalisation at a Distance through an in-depth analysis of 1141 students’ experiences while studying at the largest distance learning institution in Southern Africa. Using an adjusted version of the Student Adaptation to College Questionnaire (SACQ) instrument developed by Baker and Siryk (1999), we have explored the study experiences of international students living at a distance, as well as South Africans and international students living in South Africa. Our regression models indicate that academic adjustment is significantly predicted by emotional adjustment, attachment towards the institution, access to technology, and internationalisation at home students. The results highlight the need for a much more complex narrative around internationalisation in distance learning settings in light of technological advances, requiring a potential reconsideration of what internationalisation ‘abroad’ and ‘at home’ might mean

Does Network Matter in International Expansion? Evidence from Italian SMEs

In order to face the new competitive scenario, Apulian textile firms are involved in a process of change and are trying to adopt a networking approach in analysing the international propensity of SMEs. The case of the textile network in Apulia has been analysed using a semi-structured questionnaire submitted to a sample of family businesses in order to verify the influence of network on their internationalisation process. The contribution that the network can give to the single firm in its internationalisation process depends also on the level of cooperation in the network. In fact, relationships – at least dual vertical relationships – are the key to overcoming size limit and providing value to all the partners involved. The research attempted to offer a better academic understanding of the role of network in international competitive advantage. Future research should be based on cross countries analysis, in order to determine whether or not the set of internal determinants of internationalisation pensity remain stable from one country to another. The findings should also be useful to local governance for a better understanding of the network phenomenon in order to develop appropriate programmes for training and supporting SMEs in the global market. This paper provides a wide analysis of the network role in the internationalisation process in a low technology sector.Internationalisation Strategies, Network Approach

Technology Capability and the Internationalization of New Ventures

This study investigates the impact of technological capability and the combination of technological capability, networking capability and financial capital on growth strategies adopted by new ventures in China. Technological capability needs leveraging through the process of combining with other capabilities. The results show that the interaction between technological capability and networking capability increases the possibility that a new venture chooses an internationalisation strategy. Technology capability provides a base to allow networks to have a positive impact on internationalisation strategies. The findings from the study provide a better understanding of technology capability and its impact on internationalisation strategies. This study also generates some important implications for high-tech new ventures in emerging economies

Journal Staff

This paper addresses the issue of R&D internationalisation of two multinationals in the electro-technical industry (GE and ABB), by means of a patent data analysis. The overwhelming majority of both companies R&D activities are concentrated in Western Europé and North America. The locational overlap between the two firms' activities is small. These results are consistent with findings from earlier studies that (1) there is little evidence to suggest that the 'production' of technology is globalised in a general sense and (2)that tapping knowledge from an industry's global lead location plays a very limited role in foreign R&D investments.Original Publication:Anna Bergek and Christian Berggren, Technological Internationalisation in the Electro-Technical Industry: A Cross-company comparison of patenting patterns 1986-2000, 2005, Research Policy, (33), 9, 1285-1306.http://dx.doi.org/10.1016/j.respol.2004.09.004Copyright: Elsevier Science B.V., Amsterdam.http://www.elsevier.com

A Postgraduate Marketing Programme’s Journey Towards Internationalisation

Internationalisation has been a significant focus of educational institutions for some time now and yet many institutions are still grappling with the most effective way to achieve it. This case study provides a critical review of steps taken within a marketing postgraduate programme towards internationalisation. Three key steps are outlined here, with a view to sharing lessons learnt at each step: module-level approach, optional virtual exchange and programme-level approach. The paper concludes that internationalisation at home is a more inclusive way forward and that faculty development, use of technology and clearly defined learning outcomes are critical elements in securing effective internationalisation