The internationalisation of research and development by multinational enterprises and the transfer sciences

Abstract

Overseas R&D in multinational enterprises responds to demand side and supply side factors. On the demand side laboratories can help to adapt or develop products for particular markets. However, since these markets may now be much wider than one country, where a laboratory doing such product development is located may also be influenced by where the best scientific inputs are available (i.e. supply-side factors). Also overseas R&D labs may do basic or applied research not related to current market needs or production conditions. The location of this is even more likely to be influenced by countries' scientific capabilities and capacities. The paper investigates the configuration of these influences on overseas R&D, and especially the role and implications of the supply-side factors.