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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 FIGURES AND MAPS XIV

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XIV List of Figures and Maps Figure 1: Research Context ................................................................................... 2 Figure 2: Value Creation Dynamics and the Role of Advanced Economies ........ 3 Figure 3: Contribution of MNEs to the World Economy ..................................... 4 Figure 4: Contribution of MNEs to Global R&D Expenditures ........................... 5 Figure 5: Conceptual Background and Research Goals ........................................ 9 Figure 6: Schematic Structure of this Dissertation ............................................. 11 Figure 7: Firms as Intangibles-Based Innovation Systems ................................. 19 Figure 8: Taxonomy of Intangible Assets ........................................................... 26 Figure 9: MNEs as Differentiated Networks ...................................................... 28 Figure 10: Process Perspective on Open Innovation .......................................... 44 Figure 11: Regional Innovation Systems and Intra-/Inter-Regional Linkages ............................................................................................ 49 Figure 12: A new perspective on Open Innovation and Regional Innovation Systems ........................................................................... 58 Figure 13: Results of a cluster analysis on the degree of Open Innovation ........ 60 Figure 14: Drivers of Future R&D Sites ............................................................. 65 Figure 15: Foundations of Dynamic Capabilities, Intangible Assets and Firm Performance ............................................................................. 76 Figure 16: Research Framework – Intangible Assets in Firms and Regions ...... 85 Figure 17: Relationship between the Degree of Embeddedness and the Innovative Performance of a Firm .................................................. 119 Figure 18: Methodological Process of Analyzing the Regional Embeddedness of the Case Study Firms ......................................... 122 Figure 19: Regional Embeddedness Matrix ...................................................... 128 Figure 20: Regional Embeddedness Matrix – Classification of the Case Study Firms ..................................................................................... 145 Figure 21: Dimensions of Localized Learning ................................................. 155 Figure 22: Reconceptualization of the Absorptive Capacity Model ................. 158 Figure 23: Analytical Research Framework ..................................................... 162 Figure 24: Organizational Infrastructure for Open Innovation at SAP ............. 174 XV Figure 25: SAP's Distributed Architecture of Innovation Activities and Global...

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