The development of global innovation networks and the transfer of knowledge (Innovation and Growth: Chasing a Moving Frontier)

Confronted with increasing global competition and rising research and development (R&D) costs, companies can no longer survive on their own innovation efforts. Their innovation activities are increasingly international, and they are embracing more "open" approaches -collaborating with external partners, whether suppliers, customers or universities, to keep ahead of the game. Multinational enterprises (MNEs), in particular, have increasingly shifted R&D activities across borders within their global value chain and rely on outside innovation for new products and processes. Non-OECD economies play a growing role in this internationalisation process and accounted for 40% of the growth of global R&D in recent years. Moreover, migration of talent now plays an important role in shaping skilled labour forces throughout the OECD area. This chapter examines the globalisation of innovation, its drivers and impacts, and examines how policy can draw greater benefits from the globalisation process.
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