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Volumn 12, Issue 2, 2000, Pages 243-262

The role of multinational corporations and national states in the globalization of innovatory capacity: The European perspective

Author keywords

[No Author keywords available]

Indexed keywords

GLOBALIZATION; INNOVATION; MULTINATIONAL ENTERPRISE; TECHNOLOGICAL DEVELOPMENT;

EID: 0034025331     PISSN: 09537325     EISSN: None     Source Type: Journal    
DOI: 10.1080/713698463     Document Type: Article
Times cited : (52)

References (82)
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    • J. H. Dunning, Multinational Enterprises and the Global Economy (Wokingham, Addison-Wesley, 1993); J. H. Dunning, 'Multinational Enterprises and the Globalisation of Innovatory Capacity', Research Policy, 23, 1994, p.67; Cantwell & Janne, op. cit., Ref. 3; Pearce, op. cit., Ref. 2; D. Archibugi & S. Iammarino, 'Innovation and Globalization: Evidence and Implications', in: F. Chesnais; G. Ietto-Gillies & R. Simonetti (Eds), European Integration and Global Corporate Strategies (London, Routledge, 2000).
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    • J. H. Dunning, Multinational Enterprises and the Global Economy (Wokingham, Addison-Wesley, 1993); J. H. Dunning, 'Multinational Enterprises and the Globalisation of Innovatory Capacity', Research Policy, 23, 1994, p.67; Cantwell & Janne, op. cit., Ref. 3; Pearce, op. cit., Ref. 2; D. Archibugi & S. Iammarino, 'Innovation and Globalization: Evidence and Implications', in: F. Chesnais; G. Ietto-Gillies & R. Simonetti (Eds), European Integration and Global Corporate Strategies (London, Routledge, 2000).
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    • D. Archibugi & J. Michie, 'The Globalisation of Technology: A New Taxonomy', Cambridge Journal of Economics, 19, 1995, p. 121; Dunning, 1994, op. cit., Ref. 4; M. Carnoy, 'Multinationals in a Changing World Economy: Whither the Nation-State?', in: M. Carnoy, M. Castells, S. S. Cohen & F. H. Cardoso (Eds), The New Global Economy in the Information Age. Reflexions on our Changing World (University Park, PA: Pennsylvania University Press, 1993).
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    • M. Carnoy, M. Castells, S. S. Cohen & F. H. Cardoso (Eds), University Park, PA: Pennsylvania University Press
    • D. Archibugi & J. Michie, 'The Globalisation of Technology: A New Taxonomy', Cambridge Journal of Economics, 19, 1995, p. 121; Dunning, 1994, op. cit., Ref. 4; M. Carnoy, 'Multinationals in a Changing World Economy: Whither the Nation-State?', in: M. Carnoy, M. Castells, S. S. Cohen & F. H. Cardoso (Eds), The New Global Economy in the Information Age. Reflexions on our Changing World (University Park, PA: Pennsylvania University Press, 1993).
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    • Archibugi & Michie, op. cit., Ref. 5; Cantwell & Janne, ibid.; J. A. Cantwell & F. Sanna-Randaccio, 'Intra-Industry Direct Investment in the European Community: Oligopolistic Rivalry and Technological Competition', in: J. A. Cantwell (Ed.), Multinational Investment in Modern Europe: Strategic Interaction in The Integrated Community (Cheltenham: Edward Elgar, 1992); J. A. Cantwell, 'The Globalisation of Technology: What Remains of the Product Cycle Model', Cambridge Journal of Economics, 19, 1995, p. 155.
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    • As derived from Fortune, and listed in Dunning & Pearce (J. H. Dunning & R. D. Pearce, The World's Largest Industrial Enterprises, 1962-1983 (Farnborough, Gower, 1985)), of which 730 had recorded patenting activity for the 1969-1995 period, with the addition of 54 technologically large companies apparently missed from the Fortune listings.
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    • To illustrate, as a measure of the degree of internationalization of technological activity we calculate the share of total patenting of some given group of firms that is attributable to research or other technological activity outside the home country of the parent company. Firms in different industries, or originating from different home countries, can then be compared with one another. The higher propensity to patent of, for example, pharmaceutical firms relative to shipbuilding companies does not affect matters, provided that pharmaceutical firms are equally more likely to patent from both their foreign and their home located activity, which is a plausible assumption.
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    • The consolidation of patents to corporate groups essentially in their 1984 form means that unfortunately it is difficult to assess the true extent of any trend over time towards the internationalization of technological activity, at least prior to 1984. Any such trend is likely to be understated in the data on the patenting of the world's largest firms for 1969-1984 for two reasons. Firstly, where this internationalization was achieved through acquisition before 1984 this is not recorded as a change in the geographical composition of the firm's technological development since the affiliate has been considered as part of the corporate group at both the beginning and the end of the period. Secondly, where acquisitions have had motives other than the extension of research facilities (and there have been many of these), it may be expected that the new parent company would tend to wind down affiliate research. Any duplication with the existing research of the MNC may be eliminated, and other functions may be centralized in the technological headquarters. This would appear in the data as a move away from the internationalization of technological activity. After 1984, there are fewer problems owing to the widespread practice of centralizing patent applications in a new corporate group following an acquisition, and because some important acquisitions after 1984 have been identified and incorporated into the relevant consolidated group from the date they occurred.
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    • Cantwell, op. cit., Ref. 7; J. A. Cantwell & U. Kotecha, 'The Internationalisation of Technological Activity: The French Evidence in a Comparative Setting', in: J. Howells & J. Michie (Eds), Technology, Innovation, and Competitiveness (Cheltenham, Edward Elgar, 1997); P. Patel & K. L. R. Pavitt, 'Sources and Directions of Technological Accumulation in France: A Statistical Comparison with FR Germany and the UK', Technology Analysis and Strategic Management, 2 (1), 1990, p. 3.
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