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Innovation Spaces in Asia

Innovation Spaces in Asia

Entrepreneurs, Multinational Enterprises and Policy

Edited by Maureen McKelvey and Sharmistha Bagchi-Sen

Innovation Spaces in Asia provides insight into how and why Asia is poised to impact global innovation. Asia is undergoing rapid developments in markets, sources of technology and user preferences. A key characteristic of the book is the rich empirical understanding of the dynamic processes, involving the strategic decisions of firms and entrepreneurs with the broader socio-economic environment in terms of institutions, markets, knowledge and innovation systems. Innovation spaces are analyzed within Asian countries and firms, from Asia to the world, and from the world to Asian countries.

Chapter 15: The internationalization of innovation: off-shoring home-base nnovative processes in software to a host-nation innovation system

Olof Zaring

Subjects: asian studies, asian business, asian innovation and technology, business and management, asia business, entrepreneurship, international business, organisational innovation, economics and finance, evolutionary economics, geography, economic geography, innovation and technology, asian innovation, organisational innovation


This chapter addresses the innovation space of Sri Lanka, set in the context of internationalization of outsourcing. This chapter provides a detailed description of one company over time, and complements Chapter 14. The perspective here is how, over time, the firm interacts with the national innovation system in the host nation, in such a way as to change the location of innovative activities for reasons having to do with financing, markets and crisis. Generally in the literature, the globalization of innovative activity is associated with growth of multinational (MNE) activity and in particular foreign direct investment (FDI) since 1945 (Narula and Zanfei, 2005). However, the degree and impact of internationalization differs between different regions of origin, where firms from the European Union (EU) obtain a larger share of patents from their foreign subsidiaries than their Japanese or US counterparts (Cantwell and Janne, 2000).

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