Entrepreneurs, Multinational Enterprises and Policy
Edited by Maureen McKelvey and Sharmistha Bagchi-Sen
Chapter 15: The internationalization of innovation: off-shoring home-base nnovative processes in software to a host-nation innovation system
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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