Comparative analysis on R&D internationalization under economy-level technological disparities and ownership-specific technological differences

Abstract

Purpose

This study aims to investigate whether there are disparities in research and development (R&D) internationalization between latecomers from economy-level technological disparities and firms with ownership-specific technological capability differences in the wind turbine industry.

Design/methodology/approach

Employing econometric analysis based on patent indicators, the authors examine the patent data assigned by the United States Patent and Trademark Office (USPTO) to the technologically advanced economy and the technologically emerging economy.

Findings

This study finds that latecomers from technologically advanced economies behave with no difference from early leaders in terms of international co-invention (INCO) but do show differences in another indicator – native ownership of foreign inventors (NOFIs). Additionally, latecomers from economy-level technological disparity show significant differences both in both INCO and NOFI. These results indicate that the latecomers from technologically advanced economies not only possess the nature of latecomers which motivates them to seek knowledge from foreign economies but also benefit from their advanced home base, thereby prompting them to internationalize and access cost-effective R&D resources. Moreover, the results demonstrate that latecomers from technologically emerging economies are more prone to engage in R&D internationalization to augment their own home base compared with firms from advanced economy.

Originality/value

This study extends the literature on R&D internationalization by introducing novel perspectives. It distinguishes some apparent distinctions of the tendency of R&D internationalization between latecomers under economy-level technological disparity as well as firms from ownership-specific technological capabilities differences. Additionally, this study disaggregates R&D internationalization into twin key dimensions: INCO and NOFI. These findings allow for a comprehensive understanding of the differences in the firm's R&D internationalization under economy-level technological disparities and ownership-specific technological differences. These findings offer valuable insights for decision-makers in navigating global innovation activities by highlighting the diverse economy-level technological advantages as well as ownership-specific advantages.

Citation

Appolloni, A., Wong, P., Ho, Y., Zheng, S. and Ding, X. (2023), "Comparative analysis on R&D internationalization under economy-level technological disparities and ownership-specific technological differences", European Journal of Innovation Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EJIM-06-2023-0460