Tuesday, March 27, 2012

ALNUAIMI Tufool, SINGH Jasjit, GEORGE Gerard
Not with my Own: International Collaboration Patterns and Innovative Capabilities in Foreign Subsidiaries of MNCs
INSEAD Working Paper 2012/39/ST

Prior literature has established that international collaboration on R&D is an important means for generating new and impactful ideas through cross-border integration of knowledge. In this study, we show that international collaboration has a long-term effect on the performance of foreign inventors, allowing them to generate high-impact patents and explore new technologies on their own. These positive effects are even more pronounced for inventors from emerging economy subsidiaries. However, we find that new capabilities and skills that foreign inventors are exposed to do not translate to subsidiary-level capabilities. One possible explanation is that foreign inventors with international experience do not develop extensive interpersonal ties with domestic colleagues, favoring instead to collaborate internationally on subsequent R&D projects.