New Perspectives on the Modern Corporation series
Edited by Bernhard Dachs, Robert Stehrer and Georg Zahradnik
In a seminal paper on research and development (R & D) in large multinational enterprises (MNEs), Pari Patel and Keith Pavitt concluded in 1991 that the production of technology remains ëfar from globalizedí, but concentrated in the home countries of the enterprises (Patel and Pavitt 1991, p 17). In their words, research and development is ëan important case of non-globalisationí. Patel and Pavitt argued that the technological performance of large firms is inextricably connected with and strongly dependent on the scientific and technological capabilities of universities and other firms in the home country. About 20 years later, a vast amount of evidence draws a different picture of R & D internationalisation: Enterprises not only produce and sell, but increasingly also develop goods and services outside their home countries, a development that became known as the internationalisation of business R & D in the literature (OECD 2008; Dunning and Lundan 2009; Hall 2010). Today, it seems to be the rule, rather than the exception, that large European firms perform R & D activities at different locations inside and outside the Single Market. Alike, MNEs from the United States have considerably extended their R & D activities in the European Union, and new players from emerging economies are entering the scene: Brazil, the Peopleís Republic of China (referred to as China in the book), India and other emerging economies have come into focus as host countries for R & D activities of US and European MNEs in recent years.