Decentralised R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs)

Pearce, R. D. (1999) Decentralised R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs). Research Policy, 28 (2-3). pp. 157-178. ISSN 1873-7625 doi: 10.1016/S0048-7333(98)00115-2

Abstract/Summary

Using material from surveys of multinational enterprise (MNE) production subsidiaries and laboratories operating in the UK, the paper seeks to discern vital changes in the roles of such R&D facilities. From the primarily tactical and technologically dependent role of adapting established group products for the local market these labs now take more committed positions in support of their group's strategic competitiveness. This can involve a much more profound involvement in original product development, or inputs into programmes of pre-competitive (basic or applied) research to support the longer term evolution of the core technology of the MNE group. It is suggested that this evolution of decentralised labs' positioning in MNE knowledge strategies implies (i) an increasing involvement in product development rather than adaptation, (ii) an interdependent rather than dependent position in group technology programmes, (iii) increased relevance of supply side influences (host country technology competencies, capacities and heritage), (iv) decline of centralising forces on R&D (e.g., economies of scale, communication and co-ordination problems, concerns of knowledge security).