New trends in globalization of corporate R&D and implications for innovation capability in host countries:: A survey from India

Since the mid-1980s, transnational corporations (TNCs) have started performing some of their strategic research and development (R&D) in some developing countries. The primary driving forces behind such a move by TNCs are technology-related, i. e. to gain access to science and technology (S&T) resources and cost-related, i. e. to exploit the cost differentials. R&D activities related to product development for regional/global markets and generic technologies by TNCs are diffusing skills and knowledge to the host countries. By establishing linkages between the local innovation systems and TNCs' worldwide R&D network, such R&D helps to integrate some developing countries into global technology development activities. (C) 1997 Elsevier Science Ltd. All rights reserved.