Business Intelligence

Local R&D Strategies And Multi-Location Firms: The Role Of Internal Linkages

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Executive Summary

This paper looks at the role of firms' internal linkages in highly competitive technology clusters, where much of the world's R&D takes place. The leading players in these clusters are multilocation firms that organize and integrate knowledge across sites worldwide. Strong internal links across locations allow these firms to leverage knowledge for competitive advantage without risking critical knowledge outflow to competitors. They examine whether multi-location firms increase internal ties when they face appropriability risks from direct competitors.

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