Research Project Global Innovation

Innovations are increasingly seen as a source of economic growth and as a useful instrument to face the competition brought about by the globalization. Not surprisingly, innovations have acquired a key-role in the growth and competition strategies of many firms, as indeed of many countries and economic regions.

At the same time, a strong trend of internationalization of innovations (the 'Global Innovation') may be observed across all countries actively participating in the global economy. In developed, industrialized economies there has been a long tradition of R&D work by foreign companies. For instance, affiliates of foreign-owned firms spent nearly 12.2 billion euros on R&D in Germany in 2003. At the same time foreign-based affiliates of German firms spent nearly 11 billion euros for R&D work abroad. Latest figures (available for year 2007, released 2010) suggest that affiliates of foreign firms spent 13.5 billion euros in Germany for R&D purposes whereas foreign affiliates of German firms spent 9.5 billion euros on R&D abroad. Germany's Chemical industry spends over 44% of its R&D budget abroad; the automotive industry 15.6%. About one-fourth of R&D-spend in Germany is carried out by affiliates of foreign firms.

This phenomenon has also spread to emerging countries reputed for their scientific capabilities. This trend is reflected in the increasing number of offshore research and development (R&D) centers located in emerging economies such as China and India and in the increasing number of patents granted to domestic firms on inventions made at such foreign locations, as a recent analysis (Nov. 2007) by us shows. The activities are often organized in the form of an offshore captive center, an international joint venture, a third-party offshore outsourcing contract (contract R&D), or a cooperation with academic and/or research institution abroad.

'Global Innovation' is a research project of the Institute of Technology & Innovation Management (TIM) at Hamburg University of Technology (TUHH). It consists of two major studies to understand the impact of Offshore R&D. A primary aim of this project is to observe, analyze and forecast developments in the field of globalization of innovations.

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