The internationalisation of research and development by Japanese enterprises

Abstract

Abstract Evidence indicates that Japanese Multinational Enterprises (MNEs) have established a large number of R&D labs outside of Japan in recent years. It is suggested that these units play particular roles in global‐innovation strategies, which are themselves a key element in global competition. The first role played by such overseas units is to provide basic research inputs, that help the Japanese parent companies to derive the basis for a new generation of products. It appears that this role is especially prominent in Japanese MNEs, who are notably responsive to the high‐quality science‐base in certain countries. The second role of overseas R&D in global‐innovation strategies is to develop specific variants of new products that fully respond to distinctive consumer needs, and production conditions, in important national (or regional, e.g. European) markets.