Innovation: Is global the way forward?

For many years, innovation and R&D centres have been largely the preserve of the developed world. European, US and Japanese companies have focused these high-end activities in their home markets and other key markets in which products need to be adapted to meet local requirements.

by Yves Doz, Georg Altman, Keeley Wilson, Steven Veldhoen, Thomas Goldbrunner
Last Updated: 23 Jul 2013

But over the last few decades, the logic of R&D internationalisation has been changing in two ways: Firstly, as companies have fanned out across the globe to access the potential of new markets, the footprints of their R&D activities have become more international or dispersed in character.

Then in the last five years, with the rapid economic emergence of India and China, the rate of R&D internationalisation has increased and looks set to continue to grow significantly.

Secondly, in tandem with the shift in footprint, the drivers behind R&D internationalisation have been changing in response to the increasing dispersion of knowledge (with new centres of competence emerging in what were previously unlikely places) and industry convergence.

These changes to the R&D innovation landscape have a significant impact on a wide set of capabilities which organisations will need to develop in order to manage and get value from their innovation activities.

The survey reveals that while many companies are building more international R&D networks, few have really begun to build the internal capabilities to run these networks effectively and efficiently.

INSEAD and Booz Allen Hamilton, 2006

Yves Doz, Georg Altman, Keeley Wilson, Steven Veldhoen, Thomas Goldbrunner recommends

To read original article click here

Read more

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Subscribe

Get your essential reading delivered. Subscribe to Management Today