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Multinational Enterprises in Regional Innovation Processes

Empirical Insights into Intangible Assets, Open Innovation and Firm Embeddedness in Regional Innovation Systems in Europe

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Jan-Philipp Kramer

This book is positioned at the interface of research in economic geography and strategic management, combining topics like intangible assets (IAs), Open Innovation strategies of multinational enterprises (MNEs), and Regional Innovation Systems (RIS). A micro-approach to analyzing the innovation behavior of nine MNEs in two advanced European economies, Germany and the UK, was applied, which has revealed key channels through which IAs are enhanced in the innovation processes of multinationals and has described their spatial roots and impact. Moreover, the study presents a novel matrix of the regional embeddedness of MNEs and systematically classifies the case study firms. Finally, it shows that geographical proximity to RIS is important for Open Innovation and enables MNEs to strengthen their absorptive capacity.

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LIST OF TABLES XII

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XII List of Tables Table 1: Framework of Knowledge Creation Processes ..................................... 23 Table 2: Organizational Capital – Micro Level .................................................. 33 Table 3: Organizational Capital – Meso Level ................................................... 34 Table 4: Network Capital – Micro Level ............................................................ 35 Table 5: Network Capital – Meso Level ............................................................. 36 Table 6: Human Capital – Micro Level .............................................................. 37 Table 7: Human Capital – Meso Level ............................................................... 38 Table 8: Open Innovation and Regional Innovation Systems – A Comparison ....................................................................................... 57 Table 9: Empirical Insights on three Dimensions of Open Innovation .............. 61 Table 10: Impact of Open Innovation practices on the introduction of new products ............................................................................................... 63 Table 11: Economic geography of innovation partners for firms in different KB sectors ........................................................................................... 66 Table 12: Relation between urban structure and the degree of openness of innovation ........................................................................................... 68 Table 13: Paired-Cases Structure of the Case Study Analysis ........................... 84 Table 14: Framework for Analysis – Organizational Capital ............................. 86 Table 15: Framework for Analysis – Network Capital ....................................... 87 Table 16: Framework for Analysis – Human Capital ......................................... 88 Table 17: Description of the Embeddedness Matrix ......................................... 129 Table 18: Embeddedness of MNEs in Regional Innovation Systems .............. 131 Table 19: Profile of a Silent Observer and Solution Demander ....................... 134 Table 20: Profile of a Regional Trend and Technology Scout ......................... 138 Table 21: Profile of a Regional Knowledge Mediator ...................................... 140 Table 22: Profile of a Regionally Embedded Innovation Facilitator ................ 143 Table 23: Number and Positions of Persons interviewed at SAP ..................... 164 Table 24: Employees in IT-Services in Baden-Württemberg and Germany (1995-2004) ....................................................................................... 168 Table 25: R&D Investment by Top Software Firms (2005) ............................. 172 XIII Table 26: Location Strategy...

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