(Georgia Institute of Technology, 2008-05)
Fernández-Ribas, Andrea; Shapira, Philip
Our contribution to the expanding literature on the globalization of research and
innovation is to investigate the extent to which sector-specific developments in an
emerging technology (such as increasing interdisciplinarity and complexity) affect
inventive activities developed abroad. We look at how technological diversity and
scientific excellence of host countries in the field of nanotechnology affect the
development of inventive activities by US multinational companies (MNCs). We identify
the most active US-based MNCs in nanotechnology-related patenting and examine
location decisions of these companies and their international subsidiaries. Econometric
results confirm our hypothesis that the technological breadth of host countries positively
influences the expected number of inventions developed abroad by US MNCs. Science
capabilities of countries also have a positive impact on the decision to invent abroad,
while the influence of market specific factors is less clear. We interpret these results as
suggesting that host country science capabilities are important to attract innovative
activities by MNCs, but as the interdisciplinary and convergent nature of nanotechnology
evolves, access to a broadly diversified knowledge base becomes important in increasing
the relative attractiveness of host locations.
(Georgia Institute of Technology, 2007-01)
Fernández-Ribas, Andrea; Shapira, Philip; Youtie, Jan
In this paper we investigate innovation strategies of foreign multinational enterprises (MNEs) by distinguishing between traditional centralized and newer decentralized competence models. In centralized competence models, MNEs maintain core research and development (R&D) functions at home, and conduct design and market screening in host locations. In decentralized competence models, MNEs also undertake R&D in host country locations. We test empirically the interrelations and heterogeneities among these three types of host country affiliate innovation activities: design, market-screening, and R&D. Our results indicate that traditional and new roles of MNEs are complements, although the determinants of each strategy are somewhat different. The presence of local knowledge spillovers is positively associated with the probability that an affiliate does R&D, design, and market-screening activities. R&D activities are more likely to appear when an affiliate has more developed internal capabilities and has been operating for a longer time in the host country. Our findings provide some support for the predictions of decentralized competence models.
(Georgia Institute of Technology, 2005)
Shapira, Philip; Youtie, Jan L.; Hegde, Deepak; Brice, Kathryn T.
Small and medium-sized manufacturers in the United States are experiencing increasing challenges in today’s global economy. U.S. manufacturing employment declined by nearly 13 percent from 1998 to 2002. More than 2.25 million manufacturing jobs were lost during this time period. Ninety-eight percent of all manufacturers, or approximately 350,000 enterprises are small or mid-sized, having 500 or fewer employees. These enterprises account for over half of the value of U.S. industrial production, and employ about 10 million jobs or two-thirds of all U.S. manufacturing workers. These workers earn in excess of twice the wages of retail workers.