BU491 Chapter Notes - Chapter 5: Inductive Transfer
Document Summary
R&d expenditure globally has more than doubled in real terms between 1992 and 2010. In today"s competitive environment, no company can assume that it can accumulate world- class knowledge and expertise by focusing only in its home-country environment, or that it can succeed just by tweaking its domestic product line. The ability to develop and rapidly diffuse innovations around the world is vital, and in this challenge, overseas operations need to take on important new roles. Yet developing this capability to create, leverage and apply knowledge worldwide is not a simple task for most mnes. Important current challenges facing mne management: how to capture, develop, leverage, and exploit knowledge to support effective worldwide innovation and learning. The local-for-local innovation relies on subsidiary-based knowledge development. Centre-for-global innovation tends to dominate in companies that we describe as global or international, whereas local-for-local processes fit more easily into the multinational strategic model.
