Motives for International Innovation in Europe

Abstract

In this thesis, I investigate international innovation strategies of firms from New Zealand, Australia, and emerging markets in the European host-country context, with a focus on their investment motives. The main research question, contributing to the international business field, is: “How do investment motives, knowledge flows and location decisions about investment in international innovation differ for multinationals from emerging and developed countries?” I contribute to the literature on the internationalisation of innovation, R&D internationalisation models and international-knowledge sourcing and creation. The knowledge-based theory of the firm and of organisational capability is the core theoretical anchor of this thesis. The thesis employs a multiple-case-study qualitative research method. It is presented as a series of three academic journal papers (Chapters 3 to 5), preceded by a literature, theory, and method overview (Chapter 2). Chapter 3 investigates location decisions for innovation by multinational enterprises (MNEs), including the case of MNEs from emerging markets (EMNEs) which engage in innovation activities in Central and Eastern Europe (CEE). It compares and contrasts motives for innovation of four MNEs from the machinery and equipment manufacturing industry operating in Europe. In Chapter 4, I study the international innovation strategies of seven Australian and New Zealand firms in the European context, to explain their investment motives, knowledge flows, and innovation performance. Chapter 5 focuses on the motives for foreign direct investment in innovation and knowledge-creation capabilities of 11 EMNEs innovating in emerging markets. It incorporates the cooperation-seeking motive (conceptualised in Chapter 3), diversification-seeking motive, and knowledge flows (analysed in Chapter 4) into the analysis of the motives and location decisions related to the underresearched R&D and innovation by non-Chinese EMNEs in CEE. The concluding Chapter 6 summarises thesis and chapter contributions, develops an integrative model, and highlights implications, limitations, and future research directions.