Competences as drivers and enablers of globalization of innovation: the Swedish ICT industry and emerging economies

Abstract

This paper explores the relationship between competences and global innovation networks in the Swedish ICT industry. More specifically this paper combines econometric techniques and case study analysis to capture the interplay between firm level competences (competences as enablers), the availability of competences in the host country (competences as drivers), and the specific strategy of the firm for engaging in global innovation networks. Our results show that for Swedish ICT firms, firm-level competences are an important enabler for globalization of innovation, particularly for offshoring. Home regional competences also play an important role for the mode of globalization of innovation that firms engage in. Host regional competences are important drivers for globalization of innovation, particularly for offshoring and collaboration. The results suggest that the breadth and depth of competences available in host countries actually determine the type of innovation activities that the subsidiary performs, as well as the role that it plays in the global innovation strategy of the company.