Globalization and Technology
Professor Rajneesh Narula
r.narula@henley.ac.uk
The course examines the problems and opportunities involved in the internationalisation of
technology and innovation, and the role of multinational enterprises (MNEs). It takes two
perspectives: that of the firm and that of the nation-state, but with greater emphasis on the
issues facing governments and policy makers in establishing and operating successful
industrial and technology policy in a globalising world.
Globalisation has blurred the importance country borders. Globalizing industries tend to be
knowledge intensive ones where MNEs need to manage multiple technical competences. This
often requires the capability to access and integrate knowledge from a wide range of
geographically and organizationally decentralized sources. International management of
technology requires an understanding of both internal and external networks, and of how they
can be mobilised to sustain competitive advantage.
Day 1: June 5
10:00-11:45
Narula
The nature of globalization and the role of MNEs in innovation, Rajneesh
13:00-15:45
The role of MNEs in innovation/innovation systems, Rajneesh Narula
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The first part of the course outlines the environmental factors that determine the location
of R&D, and how globalization, the growing role of MNEs and technological change are
deeply interrelated.
We then examines the characteristics of ‘systems of innovation’ and the conditions under
which certain geographical areas become centres of innovation in particular industries.
On this basis, it goes on to discuss the strategic challenges facing firms that attempt to
create and maintain technologically based competitive advantages in an increasingly
‘globalized environment’.
We introduce the concepts of inertia and lock-in and their role in affecting
competitiveness of nations.
Day 2, June 6
09:00-11:45
Policy issues that arise from MNE R&D, Rajneesh Narula
13:00-15:45
Outsourcing, alliances and open innovation networks, Rajneesh Narula
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On day 2, we close the discussion of innovation systems by focusing by further
developing the issues of innovation systems, by focusing on the Norwegian case,
discussing the problems of managing a technology and innovation policy in a world
where national policy is seriously limited in its efficiency by the fact that
governments of small open economies are increasingly limited in traditional strategic
policy making.
We then move on to the issue of R&D cooperation, discussing the nature of
cooperation and the extent to which alliances and outsourcing affect the R&D of firms.
Does cooperation act as a substitute or a complement for in-house R&D? What are the
prospects for the smaller firm?
Day 3, June 7
09:00-10:45
Papers etc.
11:00-12:45 – R&D alliances, innovation systems and what it means for policy, Rajneesh
Narula
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We draw all the strings together, connecting the policy issues that arise from both
innovation systems and R&D cooperation.
Reading list (preliminary)
Criscuolo, P and Narula, R. (2007) Using multi-hub structures for international R&D:
organizational inertia and the challenges of implementation, Management International
Review, Vol 46, 639-660
Iammarino, S., P. McCann (2006), 'The structure and evolution of industrial clusters:
Transactions, technology and knowledge spillovers'. Research Policy 35(7) 1018-1036.
Narula, R (2004) R&D Collaboration by SMEs: new opportunities and limitations in the face
of globalisation, Technovation, Vol 24, pp 153-161
Narula, R. (2003) Globalisation and Technology, Polity press: Cambridge.
Narula, R., A. Zanfei (2005) 'Globalization of innovation: The role of multinational
enterprises'. J. Fagerberg, D. Mowery, R. Nelson, eds. Handbook of Innovation. . Oxford
University Press, Oxford.
Narula, R., G.D. Santangelo (2009), 'Location, collocation and R&D alliances in the
European ICT industry'. Research Policy, 38(2) 393-403.
Narula, R., J. Guimon (2012)The role of multinational corporations in the national innovation
systems of the EU new member states' in Martin Heidenreich (ed) Innovation and
Institutional Embeddedness of Multinational Companies, Edward Elgar, Aldershot.
Rajneesh Narula is Professor of International Business Regulation and Director of the John H.
Dunning Centre for International Business at the Henley Business School, University of Reading, UK.
His research and consulting have focused the internationalization of innovation, R&D alliances, and
the role of multinational firms in industrial development. He is the author or editor of nine books,
and over 60 articles and chapters in books. He acts regularly as a consultant and advisor to various
UN agencies, the European Commission and the OECD. Besides a number of short-term visiting and
honorary appointments, Prof. Narula has previously held positions at the Copenhagen Business
School, University of Oslo, BI Norwegian Business School, the University of Maastricht, Rutgers
University, and the United Nations.