Geography Reference
In-Depth Information
MNEs, which on average have relatively high levels of accumulated
competencies, tend to be more research-intensive than other domestic
firms in the same industry. They are thereby more capable of overcoming
innovation bottlenecks and barriers (see Box 4.1 for an illustrative case
study), and of taking advantage from the opportunities offered by the
most promising technological fields (e.g., Cantwell 1991; Iammarino et al.
2009). Furthermore, a growing complementarity between technological
diversification and internationalization has emerged over time, thereby
merging two of the crucial firm strategies for growth originally envisaged
by Penrose (e.g., Pearce 1983; Pavitt and Patel 1991; Granstrand and
Sjölander 1992; Zander 1997, 1999a, b; Blanc and Sierra 1999; Santangelo
2001; Cantwell and Piscitello 2000; Patel and Le Bas 2005). In order
not just to exploit effectively but also to consolidate existing productive
capabilities, it is generally necessary for a firm to grow by extending its
capabilities into new related technological fields, and across a variety of
geographical sites. The firm is therefore able to benefit from complemen-
tarities both between related fields of production and between related
paths of innovation, and from corporate learning in different institutional
settings (e.g., Cantwell 1992; Chesnais 1992; Cantwell and Iammarino
2005; Castellani and Zanfei 2006; Cantwell and Piscitello 2010).
4.6.2
The Globalization of Technology and Global-Local Knowledge
Interactions
Over time, the core of the MNE analysis has therefore shifted from a uni-
lateral link between innovation and internationalization, to a multi-way
relationship between these phenomena. Such an approach seems more
suitable for explaining and interpreting the current organization of tech-
nological activities across space in a context of increasing globalization.
Indeed, the concept of the globalization of innovation has been depicted
as the 'zip' between the two fundamental phenomena of current economic
systems, namely the increased international integration of economic
activities carried out especially by MNEs, and the raising importance of
knowledge in socio-economic processes (Archibugi and Iammarino 1999;
Narula and Zanfei 2005). Attempts have been made to critically assess
the concept of globalization as applied to technology (Archibugi and
Michie 1995), and in this respect three complementary categories have
been identified. First, there is the international exploitation of technology
which is produced on a national basis, in which the innovators aim to gain
economic advantages from their own technological competencies in inter-
national markets. Second, there is the global generation of innovations,
which are those innovations which were originally conceived by MNEs on
