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 (2019) 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 . ISSN 0217-4561 (Published online first)

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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
Research Areas: A. > Business School > International Management and Innovation > International Business group
Item ID: 24858
Notes on copyright: This is a post-peer-review, pre-copyedit version of an article published in Asia Pacific Journal of Management. The final authenticated version is available online at: http://dx.doi.org/10.1007/s10490-018-9620-x
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Depositing User: Shasha Zhao
Date Deposited: 29 Aug 2018 16:36
Last Modified: 05 Apr 2019 09:29
URI: https://eprints.mdx.ac.uk/id/eprint/24858

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