Global Innovation Strategy Research Articles

Multinational R&D decentralization in emerging markets: subsidiary evolution, autonomy, and influence in global innovation

This study examined how multinational enterprises (MNEs) decentralized research and development (R&D) strategy impacts different evolution paths of R&D centers in emerging markets (EMs). We analyzed the centers' evolution paths in relation to subsidiary autonomy and influence in the MNE's global innovation. We conducted an inductive, in‐depth case study on the Volkswagen Group. We collected data from the headquarters and R&Ds centers of five subsidiaries in EMs. Our study revealed that Volkswagen adopted a decentralized R&D strategy, giving more autonomy to the EMs R&D centers, increasing the subsidiaries' innovation opportunities and their strategic role in the global innovation strategy. We compared two different evolution paths in EMs subsidiary R&D centers. The first path was a traditional one – found in Brazil, Mexico, and the Czech Republic – in which the R&D centers evolved from adapting products from the headquarters to launching innovative products for local markets and, later, becoming a global R&D center. In the second path, observed in China and India subsidiaries, the R&D centers evolved from offshoring units to technology units and finally to global R&D centers. This happened due to EMs' abundance of highly qualified, low‐cost labor and location‐specific technological capabilities. We advanced previous MNE R&D research by explaining how EMs R&D centers with different evolution paths gained more autonomy, increasing their sphere of influence in the multinational's global innovation strategy. We also provided insights on how to manage R&D in EMs.

Unlocking Dysprosium Constraints for China's 1.5 °C Climate Target.

Some key low-carbon technologies, ranging from wind turbines to electric vehicles, are underpinned by the strong rare-earth-based permanent magnets of the Nd, Pr (Dy)-Fe-Nb type (NdFeB). These NdFeB magnets, which are sensitive to demagnetization with temperature elevation (the Curie point), require the addition of variable amounts of dysprosium (Dy), where an elevation of the Curie point is needed to meet operational conditions. Given that China is the world's largest REE supplier with abundant REE reserves, the impact of an ambitious 1.5 °C climate target on China's Dy supply chain has sparked widespread concern. Here, we explore future trends and innovation strategies associated with the linkage between Dy and NdFeBs under various climate scenarios in China. We find China alone is expected to exhaust the global present Dy reserve within the next 2-3 decades to facilitate the 1.5 °C climate target. By implementing global available innovation strategies, such as material substitution, reduction, and recycling, it is possible to avoid 48%-68% of China's cumulative demand for Dy. Nevertheless, ongoing efforts in REE exploration and production are still required to meet China's growing Dy demand, which will face competition from the United States, European Union, and other countries with ambitious climate targets. Thus, our analysis urges China and those nations to form wider cooperation in REE supply chains as well as in NdFeB innovation for the realization of a global climate-safe future.

ЕФЕКТИВНІСТЬ КОРПОРАТИВНИХ СТРАТЕГІЙ БНП У НАУКОВО-ТЕХНОЛОГІЧНОМУ ОБМІНІ

In the modern scientific literature, there is currently no statistically confirmed significant relationship between the amount of innovation costs of companies and the effectiveness of their financial and economic activities. The fact is that the environmental conditions for the functioning of national innovation systems favorable for corporate R&D are a necessary, but not sufficient, condition for entrepreneurial and business structures to maintain competitive leadership. The main measure of the effectiveness of the BNP corporate strategies of scientific and technological exchange is their ability to ensure a qualitative update of the technological base of production and the organizational system of business operations. The strategy of scientific and technological exchange of BNP in the author's interpretation can be qualified as a generalized model of their purposeful activity in order to achieve the key goals of competitive development in global coordinates based on the effective use of the domestic and global business environment for the design, development and production of qualitatively new types of goods and services, equipment and technologies, objects of work and objects of intellectual property. At the same time, the global innovation strategies of BNP are a concentrated reflection of the transnationalization of production and capital as the highest form of development of the internationalization of economic life. The techno-globalization conditions of the corporatization of technological transfer put the implementation of hybrid strategies of scientific and technological exchange, which are based on the convergent combination of the most constructive elements of traditional strategies of technological transfer, among the priority factors of the competitive leadership of BNP. This opens up to multinational companies wide opportunities for the simultaneous application of fundamentally different mechanisms, ensures a high level of flexibility and adaptability of hybrid strategies to the turbulent conditions of technological globalism, with the involvement of all possible links in the generation of profits in the scientific and technological exchange of BNP.

Spanning Two Worlds? Corporate Accelerators and Corporate Venture Capital in Innovation Portfolios

This paper tackles a crucial problem in the theory and practice of global innovation strategy: In the face of technological and business model disruptions, often originating in innovative startups, how do companies respond with entrepreneurial ideas? Specifically, how do established companies use entrepreneurial approaches to facilitate access to startup innovation? This research examines the roles of corporate accelerators and corporate venture capital investing. Using a sample of companies with both corporate accelerators and corporate venture capital arms, this study provides preliminary descriptive evidence of the role of both types of external knowledge partnerships with startups. Specifically, the paper points to greater experimentation in CVC portfolios in terms of startup focus and industry distribution relative to corporate accelerator portfolios. At the same time corporate accelerators may provide access to greater geographic distribution in their portfolio companies. A novel algorithmic approach based on natural language processing and machine learning is used to characterize the distributions of portfolio companies. The paper raises questions for further study addressing the potential for complementarity and substitution amongst these two forms of corporate innovation in partnership with startups.

Research on the impact of global innovation network on corporate performance

ABSTRACT In this study, we attempted to fill a gap that literature has yet to investigate: the impact of global innovation network on corporate performance. Based on 347 valid questionnaire data, this paper uses regression analysis to explore which innovative network elements have an impact on the performance of Chinese 3D printing companies. The research results show that the structural characteristics of global innovation networks, the willingness of integrating network and the capability of integrating network are all positively correlated with the performance of 3D printing companies. There is no obvious correlation between the scale of the enterprise, the stage of enterprise development and corporate performance. The research conclusions will provide theoretical support for 3D printing companies to formulate global innovation strategies and policies.

International Journal of Innovation - IJI completes 7 years

International Journal of Innovation - IJI completes 7 years

Research on the impact of global innovation network on 3D printing industry performance

In this study, we attempted to fill a gap that literature has yet to investigate: the impact of global innovation network on industry performance. Based on 3D printing patent data, this paper builds a cooperative innovation network of 34 economies for six years. It represents the network characteristics of each economy through 204 network attribute indicators. The panel data model is used to study the relationship between global innovation network characteristics and the R&D efficiency and the income of the main business of the 3D printing industry. The input and output data for the R&D efficiency of the 3D printing industry is derived from the Wohlers Report. R&D efficiency indicator values are measured by the Malmquist Productivity Index model based on DEA. The research results show that the global innovation network centrality indicators, structural hole indicators and clustering coefficient indicators have significant correlation with industrial performance. The research conclusions will provide theoretical support for various economies to formulate global innovation strategies and policies of 3D printing industry.

The role of innovation labs in advancing the relevance of Public Service Media: the cases of BBC News Labs and RTVE Lab

As part of their social function, Public Service Media (PSM) organizations are devoted to innovation. In this context, a number of European PSM outlets have created laboratories based on the implementation of products, services and formats for multiplatform audiences. Our research focused on two case studies: a) BBC News Labs (UK) and b) RTVE Lab (Spain). We applied both quantitative and qualitative methodologies. We used content analysis techniques to examine products generated by the two laboratories between 2013 and 2017, quantifying and classifying each one according to categories related to the type and nature of the innovation. We carried out ethnographic research using participant observation over five days in each laboratory, both in London and Madrid. We also conducted open-ended interviews with five professionals at the BBC and three at RTVE, as well as with the head of EBU’s Media Strategy & Development department. Our results show that BBC News Labs implements a global innovation strategy through the design and engineering of products that facilitate journalists’ work. Projects include speechto- text software, prototypes for voice recognition and text analysis, chatbots and object-based media. On the other hand, RTVE Lab focuses on designing and producing interactive formats, multimedia narratives and social media content, with an emphasis on experimentation. The findings reveal the main barriers and incentives to innovation within each lab and show how the transfer of innovation could increase the diversity, universality and quality of their overall output.

Exploring the characteristics of 3D printing global industry chain and value chain innovation network

In this study, we attempted to fill an important gap that literature has yet to investigate: the characteristics of the 3D printing global industry chain and value chain innovation network. The network characteristics analysis is based on patents and the patent data download from the European Patent Office (EPO) database covering the period from January 1, 1989 to December 31, 2017. The concept of the 3D printing global industry chain and value chain network is defined, then the network model is divided by employing case analysis, and finally the network characteristics are analyzed by using social network analysis. This research enriches the relevant theories of global innovation networks in emerging industries and provides theoretical support for the development of global innovation strategies and policies for the 3D printing industry.

The role of innovation labs in advancing the relevance of Public Service Media: the cases of BBC News Labs and RTVE Lab

As part of their social function, Public Service Media (PSM) organizations are devoted to innovation. In this context, a number of European PSM outlets have created laboratories based on the implementation of products, services and formats for multiplatform audiences. Our research focused on two case studies: a) BBC News Labs (UK) and b) RTVE Lab (Spain). We applied both quantitative and qualitative methodologies. We used content analysis techniques to examine products generated by the two laboratories between 2013 and 2017, quantifying and classifying each one according to categories related to the type and nature of the innovation. We carried out ethnographic research using participant observation over five days in each laboratory, both in London and Madrid. We also conducted open-ended interviews with five professionals at the BBC and three at RTVE, as well as with the head of EBU’s Media Strategy & Development department. Our results show that BBC News Labs implements a global innovation strategy through the design and engineering of products that facilitate journalists’ work. Projects include speechto- text software, prototypes for voice recognition and text analysis, chatbots and object-based media. On the other hand, RTVE Lab focuses on designing and producing interactive formats, multimedia narratives and social media content, with an emphasis on experimentation. The findings reveal the main barriers and incentives to innovation within each lab and show how the transfer of innovation could increase the diversity, universality and quality of their overall output.

Opening the reverse innovation black box to pinpoint its drivers and challenges in Western MNCs

If hallmark examples of reverse innovation flourish, the micro-level drivers and challenges of this phenomenon remain understudied. The present paper aims at filling that gap by investigating the reversal process at stake to better tackle its managerial challenges. This conceptual paper first explores the market drivers/challenges associated to reverse innovation, leading to fine-tune the phenomenon by using the disruptive innovation lenses. In a second part, the article relies on international business literature, to characterise intra-MNC bottlenecks and configure enabling managerial practices. The analysis first outlines two types of reverse innovation (associated to different marketing and creative stakes) and then highlights their respective organisational conducive environments and major bottlenecks. Opening the reverse innovation black box and pinpointing its underlying process increases both the analytical power of the concept and the ability of Western MNCs to successfully run such global innovation strategies.

Global Organizational Innovation Strategy

Global innovation strategy makes a global (or international) organization more competitive and contributes to long term growth. A focus on newer trends and approaches in the technology and internal and external organizational processes would help the innovative and entrepreneurial spirit and endeavor. The proper organizational entrepreneurial goals, strategy and culture would generate greater connectedness with the relevant task environments for the global organization to explore and subsequently pursue newer product and services. Altogether, the integrated global sharing, joint experimentation among its subsidiaries and their combined innovation effort, the well-interfaced global supply chain’s innovative endeavors, and the well-planned and systematic innovation strategy, together would spur greater global competitiveness and growth. It is a combined global approach that would effectively generate innovation.

Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China

Emerging economies have become new destinations for knowledge sourcing, forcing Multinational Enterprises (MNEs) to reconfigure their global innovation strategies and structure. While foreign subsidiaries located in emerging economies were conventionally viewed as having market or efficiency seeking roles, they have started to evolve towards knowledge-seeking roles. We argue that the conventional wisdom shall be reassessed considering this recent shift. We empirically investigate 129 manufacturing MNE subsidiaries of Fortune 500 companies in China, in terms of their roles and sources of technology. Our results indicate that market and knowledge seeking subsidiaries located in China tend to have a positive impact on the generation of new knowledge, either through locally established MNE R&D laboratories or through collaborations with local firms and scientific institutions.

Genomic Medicine Without Borders: Which Strategies Should Developing Countries Employ to Invest in Precision Medicine? A New "Fast-Second Winner" Strategy.

Genomic medicine has greatly matured in terms of its technical capabilities, but the diffusion of genomic innovations worldwide faces significant barriers beyond mere access to technology. New global development strategies are sorely needed for biotechnologies such as genomics and their applications toward precision medicine without borders. Moreover, diffusion of genomic medicine globally cannot adhere to a "one-size-fits-all-countries" development strategy, in the same way that drug treatments should be customized. This begs a timely, difficult but crucial question: How should developing countries, and the resource-limited regions of developed countries, invest in genomic medicine? Although a full-scale investment in infrastructure from discovery to the translational implementation of genomic science is ideal, this may not always be feasible in all countries at all times. A simple "transplantation of genomics" from developed to developing countries is unlikely to be feasible. Nor should developing countries be seen as simple recipients and beneficiaries of genomic medicine developed elsewhere because important advances in genomic medicine have materialized in developing countries as well. There are several noteworthy examples of genomic medicine success stories involving resource-limited settings that are contextualized and described in this global genomic medicine innovation analysis. In addition, we outline here a new long-term development strategy for global genomic medicine in a way that recognizes the individual country's pressing public health priorities and disease burdens. We term this approach the "Fast-Second Winner" model of innovation that supports innovation commencing not only "upstream" of discovery science but also "mid-stream," building on emerging highly promising biomarker and diagnostic candidates from the global science discovery pipeline, based on the unique needs of each country. A mid-stream entry into innovation can enhance collective learning from other innovators' mistakes upstream in discovery science and boost the probability of success for translation and implementation when resources are limited. This à la carte model of global innovation and development strategy offers multiple entry points into the global genomics innovation ecosystem for developing countries, whether or not extensive and expensive discovery infrastructures are already in place. Ultimately, broadening our thinking beyond the linear model of innovation will help us to enable the vision and practice of genomics without borders in both developed and resource-limited settings.

EU Science Diplomacy and Framework Programs As Instruments of STI Cooperation

This article examines the tools that the EU in interactions with third countries in the field of STI uses. The EU is a pioneer in the use of science and technology in the international arena, the creation of strategic bilateral agreements on science and technology and the conduct of political dialogues at the highest political level (at the country and regional levels). The EU actively uses its foreign policy instruments of influence, including the provision of access to its framework programs to researchers from third countries, as well as scientific diplomacy. The success of these programs and scientific diplomacy shows the effectiveness of the EU as a global actor. In its foreign policy global innovation strategy, the EU proceeds from the premise that no state in the world today can cope independently with modern global challenges such as climate change, migration, terrorism, etc. Therefore, the solution of these issues requires both an expert evaluation from an independent world scientific community, and the perseverance of diplomats and officials of branch ministries of national states capable of conveying the views of their government in international negotiations and defending national interests of the country to find a solution that suits everyone. The EU has the resources to create a cumulative effect by developing and applying common norms on the territory of theUnion, analyzing the innovation policies of member states and the possibility of sharing best practices. At the same time, the EU shares its vision of problems, values and priorities with partners and uses the tools of (including its smart and normative force) and scientific diplomacy in the field of STI. The soft power of the EU in the field of STI lies in the attractiveness of the EU as a research area in which it is possible to conduct modern high-quality international research with the involvement of scientific teams from different countries in both physical and virtual spaces. The EU training programs and expertise contribute to the development of a flexible approach in international cooperation, supported by scientific facts. On this basis practical, scientific partnerships are formed and scientific exchanges are taking place.

EU Science Diplomacy and Framework Programs As Instruments of STI Cooperation

This article examines the tools that the EU in interactions with third countries in the field of STI uses. The EU is a pioneer in the use of science and technology in the international arena, the creation of strategic bilateral agreements on science and technology and the conduct of political dialogues at the highest political level (at the country and regional levels). The EU actively uses its foreign policy instruments of influence, including the provision of access to its framework programs to researchers from third countries, as well as scientific diplomacy. The success of these programs and scientific diplomacy shows the effectiveness of the EU as a global actor. In its foreign policy global innovation strategy, the EU proceeds from the premise that no state in the world today can cope independently with modern global challenges such as climate change, migration, terrorism, etc. Therefore, the solution of these issues requires both an expert evaluation from an independent world scientific community, and the perseverance of diplomats and officials of branch ministries of national states capable of conveying the views of their government in international negotiations and defending national interests of the country to find a solution that suits everyone. The EU has the resources to create a "cumulative effect" by developing and applying common norms on the territory of theUnion, analyzing the innovation policies of member states and the possibility of sharing best practices. At the same time, the EU shares its vision of problems, values and priorities with partners and uses the tools of "soft power" (including its smart and normative force) and scientific diplomacy in the field of STI. The soft power of the EU in the field of STI lies in the attractiveness of the EU as a research area in which it is possible to conduct modern high-quality international research with the involvement of scientific teams from different countries in both physical and virtual spaces. The EU training programs and expertise contribute to the development of a flexible approach in international cooperation, supported by scientific facts. On this basis practical, scientific partnerships are formed and scientific exchanges are taking place.

Innovating for the future: charting the innovation agenda for firms in developing countries

Purpose – The purpose of this paper is to identify the four principles for firms in developing countries to enhance and augment their innovation agenda for staying competitive. With increasing globalization, firms need to continually calibrate and realign their innovation strategies to remain competitive. Although many firms in the developed countries are making sustained efforts to adopt the developing world perspective on innovation, similar efforts by firms in developing countries to reorient their innovation strategies to the developed world are minimal. In the long run, this might erode the competitiveness of firms in developing countries. Leveraging the global innovation strategy framework, the paper suggests four principles that can help developing country firms transition from a local to a global innovation strategy. Specifically, the paper exhorts developing country firms to move from a “good-enough” innovation approach to an “augmented” innovation philosophy that aims to serve the latent needs of the users. The four principles suggested for the developing country firms to further their innovation agenda are: invest in research; learn to fail; be patient; and alliance and acquire. Design/methodology/approach – The paper uses prior literature and frameworks to identify the four principles that firms in developing countries should follow for furthering their innovation agenda with a view to becoming global in their approach. Findings – The four principles suggested for the developing country firms to further their innovation agenda are: invest in research; learn to fail; be patient; and alliance and acquire. Originality/value – The paper identifies the four principles for firms in developing countries to enhance and augment their innovation agenda for staying competitive.

The role of clusters in the global innovation strategy of MNEs

Purpose– This paper aims to focus on the role of clusters as home and host country-specific advantages for multinational enterprises (“MNEs”) in the organization of their internal and external networks to optimize the diffusion and generation of new knowledge. Strategic asset-seeking investment has been a major driver of the internalization of innovation activities performed by MNEs abroad. This paper demonstrates the attractiveness of foreign clusters in the global innovation process of MNEs. The main assumption is that location within innovative clusters may foster the ability of firms to generate new innovations.Design/methodology/approach– This paper illustrates the theoretical developments through the example of firms located in the Basel pharmaceutical clusters which have invested in other clusters abroad.Findings– The results are based on an in-depth patent data analysis and confirm the importance of clusters in an innovation-driven industry.Originality/value– This paper focuses on the role of clusters as home and host country-specific advantages for “MNEs” in the organization of their internal and external networks to optimize the diffusion and generation of new knowledge. Strategic asset-seeking investment has been a major driver of the internalization of innovation activities performed by MNEs abroad. This paper demonstrates the attractiveness of foreign clusters in the global innovation process of MNEs. The main assumption is that location within innovative clusters may foster the ability of firms to generate new innovations. This paper illustrates the theoretical developments through the example of firms located in the Basel pharmaceutical clusters which have invested in other clusters abroad. The results are based on an in-depth patent data analysis and confirm the importance of clusters in an innovation-driven industry.

What Is Your Global Innovation Strategy?

The developing world doesnt approach innovation in the same way as the developed world. Therefore, as firms globalize, they must be mindful of some fundamental differences as they craft their innovation strategies. This article articulates key dimensions and innovation approaches that differ across developing and developed economies. It proposes a framework that managers can use to develop a comprehensive innovation strategy and to tailor their IT systems accordingly.

Rethinking Global Innovation Strategy: Emerging Market Perspectives

The prosperity of emerging markets is challenging the traditional global innovation strategy. The unique characteristics—market fragmentation, demand heterogeneity, shortage of resources and inadequate infrastructure—of emerging markets impel their emergence as a source of innovation and disruptive force. Only the innovation with attributes of accessibility, acceptability, affordability and sustainability can match these characteristics and contribute to the rest of world. After revisiting the reality and dilemmas in today’s world, it is suggested that the essence of innovation should be solving everyday problems, eradicating poverty and hunger, and helping the people attain an inclusive-and-sustainable future. Therefore, this paper develops a grand revolution paradigm and provides a top-down-and-bottom-up approach to explore the untapped “Fortune at the Bottom of the Pyramid”.