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The internationalization of innovation towards the South: A historical case study of a global pharmaceutical corporation in China (1993–2017)

Zhao, Shasha, Tan, Hui, Papanastassiou, Marina and Harzing, Anne-Wil (2020) The internationalization of innovation towards the South: A historical case study of a global pharmaceutical corporation in China (1993–2017) Asia Pacific Journal of Management, 37 (2). pp. 553-585.

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Abstract

Intensified competition means that multinational enterprises (MNEs) are increasingly concerned with locating innovation activities in the most appropriate locations. This had led to emerging economies in the South becoming an important destination of R&D-related foreign direct investment (FDI), departing from their traditional role as low-cost production sites. Thus far, however, our understanding of this transformation process is limited. The purpose of this article is therefore to explore the process by which foreign MNEs’ low-value-adding operations in the South are transformed into high-value-adding R&D operations. Drawing on the current literature, we construct a framework of evolution consisting of four major waves of R&D internationalization and corresponding R&D objectives. To better understand how these waves have evolved over time, we focus on the South and trace the process of change using a single historical case study: AstraZeneca in China between 1993 and 2017. We find evidence of idiosyncratic location-bound conditions offering both opportunities and resources. The gradual development of these favourable conditions, along with AstraZeneca’s deepening local knowledge, triggered a transformation process in their operations in China. Our study thus offers important historical insights, which present a platform for future research providing more nuanced theoretical explanations of the four waves of R&D internationalization.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
NameEmailORCID
Zhao, Shashashasha.zhao@surrey.ac.uk
Tan, Hui
Papanastassiou, Marina
Harzing, Anne-Wil
Date : June 2020
DOI : 10.1007/s10490-018-9620-x
Copyright Disclaimer : Copyright © 2019, Springer Nature
Uncontrolled Keywords : R&D internationalization; Emerging economies; North and South; Historical case study
Depositing User : Clive Harris
Date Deposited : 03 Sep 2020 20:06
Last Modified : 03 Sep 2020 20:06
URI: http://epubs.surrey.ac.uk/id/eprint/858537

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