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How does multinational R&D evolve in emerging markets

, Srivardhini K Jha, Charles Dhanaraj
Published in International Institute for Management Development
2015
Pages: 1 - 35
Abstract

Our inductive study of nine European multinational enterprises (MNEs) and their R&D units in India uncovers a distinct trajectory of overseas R&D evolution, ubiquitous in emerging markets. In contrast to the well-known adaptation trajectory, the alternative trajectory is triggered by arbitrage motivation but over time evolves through stages to reach global product research. Our study presents how foreign R&D units build embeddedness within the MNE network and with the local ecosystem, and how such embeddedness influences the evolution of their R&D mandate, much more than the macro conditions. We present a stylized taxonomy of R&D configurations and integrate this into an evolutionary model of global R&D and suggest that MNE innovation research must shift from focusing on starting conditions to exploring the dynamics of embeddedness.

About the journal
JournalWORKING PAPER
PublisherInternational Institute for Management Development
Open AccessNo
Concepts (11)
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    Innovation
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    MNE R&D
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    Emerging markets
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    R&d strategy
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    Internal embeddedness
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    Business embeddedness
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    Global innovation network
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    Arbitrage
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    Adaptation
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    Aggregation
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    Aaa framework for r&d.