R&D globalization in the car industry

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The globalization of markets, the regionalization of technical and scientific expertise, and the rapid change in technologies are forcing car manufacturers to review their R&D organization. The thesis of the internationalization of R&D activities is built on a long series of arguments. In contrast, a number of authors stress that R&D activities provide the basis for future earnings to be kept in the home base for security reasons. In comparison with other sectors, globalization of innovation networks in the car industry is limited and the international duplication and diversification of technology is moderate at the most. The development of global networks is constrained by communication difficulties, pressures for regional autonomy, predominance of applied research and mechanical specialization. Nevertheless, like other multinational companies, some car manufacturers have been introducing different organizational concepts in international R&D. The new developments in mergers, acquisition and joint operations are emphasizing this trend. © 2001 Inderscience Enterprises Ltd.