The role of clusters in the global innovation strategy of MNEs: Theoretical foundations and evidence from the Basel pharmaceutical cluster. Issue 3 (18th May 2015)

• Record Type: Journal Article
• Authors: Gugler, Philippe; Keller, Michael; Tinguely, Xavier
• Is Part Of: Competitiveness review. Volume 25:Issue 3(2015)
• Page Start: 324
• Page End: 340
• Publication Date: 2015-05-18
• Subjects: Clusters -- Innovation -- Pharmaceutical industry; Competition -- Periodicals; Competition, International -- Periodicals; Competition -- United States -- Periodicals; United States -- Economic policy -- 1981- -- Periodicals; United States -- Commercial policy -- Periodicals; 338.604805
• DOI: 10.1108/CR-09-2014-0033
• Languages: English
• ISSNs: 1059-5422

Abstract

Abstract : Purpose: – This paper aims to focus on the role of clusters as home and host country-specific advantages for multinational enterprises ("MNEs") in the organization of their internal and external networks to optimize the diffusion and generation of new knowledge. Strategic asset-seeking investment has been a major driver of the internalization of innovation activities performed by MNEs abroad. This paper demonstrates the attractiveness of foreign clusters in the global innovation process of MNEs. The main assumption is that location within innovative clusters may foster the ability of firms to generate new innovations. Design/methodology/approach: – This paper illustrates the theoretical developments through the example of firms located in the Basel pharmaceutical clusters which have invested in other clusters abroad. Findings: – The results are based on an in-depth patent data analysis and confirm the importance of clusters in an innovation-driven industry. Originality/value: – This paper focuses on the role of clusters as home and host country-specific advantages for "MNEs" in the organization of their internal and external networks to optimize the diffusion and generation of new knowledge. Strategic asset-seeking investment has been a major driver of the internalization of innovation activities performed by MNEs abroad. This paper demonstrates the attractiveness of foreign clusters in the global innovation process of MNEs. The main assumption is that location within innovative clusters may foster the ability of firms to generate new innovations. This paper illustrates the theoretical developments through the example of firms located in the Basel pharmaceutical clusters which have invested in other clusters abroad. The results are based on an in-depth patent data analysis and confirm the importance of clusters in an innovation-driven industry.