Globalization and Technology
Professor Rajneesh Narula
r.narula@henley.ac.uk
The seminar examines the problems and opportunities involved in the internationalisation of
technology and innovation, and the role of multinational enterprises (MNEs). At the heart of
such an analysis are fundamental economic and social changes associated with globalization.
Course description
This seminar will discuss two aspects of globalization and technology:

How firms have become increasingly interdependent, when it comes to innovation.
They do so by engaging in more collaborative activities, through outsourcing and
strategic alliances, but also by establishing R&D laboratories elsewhere. However,
there are considerable organisational and managerial challenges in expanding their
global footprint;

How countries have also become increasingly interdependent, and what this means
from the point of view of policy makers, and the space to implement industrial and
innovation policy.
Day 1: June 16
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



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 examine 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 17
09:00-11:45 Optimising R&D and the competitiveness of new and high-tech sectors,
Rajneesh Narula
13:00-15:45 Anatomy of a new industry: the case of biotech (guest speaker Amir
Moghaddam)
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
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On day 2, we close the discussion of innovation systems by focusing on how R&D is
performed, the importance of cross-border linkages and global and regional innovation
systems. What are the challenges for managers of new and smaller firms in surviving
technological competition through competition and collaboration?
In the afternoon, we meet Dr Amir Moghaddam. Amir has Bachelor’s degree in
Biochemistry from university of London and a PhD from University of Oxford. He
started his research career at Harvard University before getting involved in 2 startup
biotechnology companies in Norway. In 2003, Amir and his partner started a Medical
diagnostic company which has an annual turnover of NOK 100 million.
Amir will discuss –for the non-specialist – what the biotech sector entails, and how, as
a scientist and entrepreneur he has engaged with universities, government agencies and
other actors both in and outside Norway.
Day 3, June 18
09:00-10:45
Outsourcing, alliances and open innovation networks part A, Rajneesh Narula
11:00-12:45 - Outsourcing, alliances and open innovation networks part B, Rajneesh Narula

We 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? How can they leverage opportunities and efficiently
optimise the use of their own resources, and those outside the firm through open
innovation?
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 an adjunct professor at BI, and a 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.