We examine the impact of buyer-supplier relationships within business group on capital goods trade in the context of foreign direct investment by buyer firms and capital goods producers. A simple model in which cost-reducing relationship specific investments are underlying business group ties...

This paper takes a closer look at the role of location advantages in the spatial distribution of MNE R&D activity. In doing so, we have returned to first principles by revisiting our understanding of L and O advantages and their interaction. We revisit the meaning of L advantages, and offer a...

There is a growing international dispersion of R&D activities by MNEs for the purposes of maintaining and augmenting their knowledge assets. Firms need to tap into alternative knowledge sources , as home countries are rarely able to meet all their technological needs. However, accessing to...

This paper asks: what can governments of new member states do to encourage MNEs to invest in R&D? There are two types of MNE R&D. Innovation can be undertaken in order to adapt its existing products and services to local stimuli. This is 'demand-driven R&D'. Innovation can also be in stand-alone...

The eclectic paradigm as developed by Dunning evolved over time, responding to changes in the way international business has been conducted as well as to link it with other related academic disciplines. I argue that if the paradigm continues to try and be a 'big tent' and a de facto theory of...

Since end of the 1990s, the world has been witnessing a phenomenon of internationalisation of Chinese companies. This internationalisation is often understood through FDI inflows, whereby multinational companies establish their presence in a form of subsidiaries overseas. However, lately many...

Between 1970 and 2000 the proportion of global R&D occurring in low income economies rose from two percent to more than 20 percent. However, this rising commitment to R&D does not easily translate into the emergence of a family of innovations meeting the needs of low income consumers "at the...

This chapter discusses general patterns of internationalization of Brazilian firms. It highlights the main determinants for internationalization, the main destinations, as well as the modes of entry that Brazilian firms employ overseas. The paper also discusses some aspects related to the...

This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm's innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit...

Internationalisation is a useful strategy to gain firm specific advantages during periods of technological discontinuity. The pharmaceutical industry offers us two such episodes as examples: when the antibiotics revolution was beginning and when the possibilities of genetic routes to new drug...