The Internationalization of R&D and its Offshoring Process

Authors: Jianlin Li, Jizhen Li

Abstract:

Transnational corporations (TNCs) are playing a major role in global R&D, not only through activities in their home countries but also increasingly abroad. However, the process of R&D offshoring is not yet discussed thoroughly. Based on in-depth case study on Agilent China Communications Operation, this paper presents a stage model for theorizing the R&D offshoring process. This stage model outlines 5 maturity levels of organization and the offshoring process: Subsidiary team, Mirror team, Independent team, Mirror sector and the Independent sector (from software engineering point of view, it is similar to the local team's capability level of maturity model). Moreover, the paper gives a detailed discussion on the relevant characteristics, as well as the ability/responsibility of transfer, priorities and the corresponding organization structure. It also gives the characteristics and key points of different level-s R&D offshoring implementation using actual team practice.

Keywords: Internationalization of R&D, R&D offshoring process, Multinational Corporations, Organization Level.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1081507

References:

[1] Ronstadt, R.C., 1977. R&D Abroad by U.S. Multinationals. Praeger, New York.
[2] Mansfield, E., Teece, D.J., Romeo, A., 1979. "Overseas R&D by U.S.-Based Firms". Economica 46, 187-196.
[3] Niosi, J., 1999. "The Internationalization of Industrial R&D From technology transfer to the learning organization". Research Policy 28, 107-117.
[4] Niosi, J., 1995. Flexible Innovation. Technological Alliances in Canadian Industry. McGill-Queen-s University Press, Montreal and Kingston.
[5] Duysters, G., Hagedoorn, J., 1996. "The internationalization of corporate technology through strategic partnering: an empirical investigation". Research Policy 25, 1-12.
[6] Dunning, J.H., 1995. "Reappraising the eclectic paradigm in an age of alliance capitalism". Journal of International Business Studies 26 _3., 461-492.
[7] National Science Board (NSB). 2008. "Research and Development: National Trends and International Linkages". In Science and Engineering Indicators 2008. Arlington, VA: National Science Foundation. http://www.nsf.gov/statistics/indicators/
[8] Howells, J.R., 2006. "Intermediation and the role of intermediaries in innovation" Research Policy 35, 715-728.
[9] Le Bas, Christian and Christophe Sierra. 2002. "Location versus home country advantages in R&D activities: some further results on multinationals' locational strategies", Research Policy 31: 589-609.
[10] von Zedtwitz M, Gassmann O. 2002. "Market versus technology drive in R&D internationalization: Four different patterns of managing research and development", Research Policy 31, 569-88.
[11] Terpstra, V., 1985. International product policy: the role of foreign R&D. In: Wortzel, H.V., Wortzel, L.V._Eds.., Strategic Management of Multinational Corporations: The Essentials. Wiley, New York.
[12] United Nations Conference on Trade and Development (UNCTAD). 2005. World Investment Report - Transnational Corporations and the Internationalization of R&D, Geneva.