Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: a review of the literature

Internationalization of R&D and innovation by Multinational Enterprises (MNEs) has undergone a gradual and comprehensive change in perspective over the past 50 years. From sporadic works in the late 1950s and in the 1960s, it became a systematically analysed topic in the 1970s, starting with pioneering reports and “foundation texts”. Our review unfolds the theoretical and empirical evolution of the literature from dyadic interpretations of centralization versus decentralization of R&D by MNEs to more comprehensive frameworks, wherein established MNEs from Advanced Economies still play a pivotal role, but new players and places also emerge in the global generation and diffusion of knowledge. Hence views of R&D internationalization increasingly rely on concepts, ideas and methods from IB and other related disciplines such as industrial organization, international economics and economic geography. Two main findings are highlighted. First, scholarly research pays an increasing attention to the network-like characteristics of international R&D activities. Second, different streams of literature have emphasized the role of location- specific factors in R&D internationalization. The increasing emphasis on these aspects has created new research opportunities in some key areas, including inter alia: cross-border knowledge sourcing strategies, changes in the geography of R&D and innovation, and the international fragmentation of production and R&D activities

International R & D: The Establishment and Evolution of Research and Development Abroad by Seven U.S. Multinationals

This article summarizes the author's extensive investigation of the research and development investments made abroad by seven U.S.–based seven multinational organizations. The article describes the factors that affected the initial Investment in 55 R&D units established abroad by the Exxon corporqtion (its energy businesses); the Exxon Chemical Company; International Business Machines(IBM); the chemicals and Plastics Group of Union Carbide Corporation; CPC International; Otis Elevator Company; and the Corning Glass Works. The article also discusses the evolution of the same 55 R&D units established abroad by these seven multinationals.© 1978 JIBS. Journal of International Business Studies (1978) 9, 7–24