Messanae Universitas Studiorum

The organization of innovative activity: a comparative case-study analysis

Gatto, Antonino and Mavilia, Roberto (2007) The organization of innovative activity: a comparative case-study analysis. Atti della Accademia Peloritana dei Pericolanti - Classe di Scienze Giuridiche Economiche e Politiche, LXXVI. pp. 35-51.

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The main objective of this study is to investigate how multinationals manage their innovative activities across physically distant facilities. It has been found that research efforts are organized differently according to the technology profile of the company.
Companies focusing on the development of specific techno1ogies are more likely to organize their innovative activities through a more dispersed structure. Both facts and literature have extensively proven that multinationals go abroad in order to acquire specific local resources.
On the other hand, if a company engages in the development of different technologies, it tends to concentrate its innovation process in narrow geographical area. Indeed, the necessity to use large amount of both human and financial resources does require the achievement of a critical mass, in order to gain/efficiency. In this case, spatial proximity favors the communication and interaction between resources, reducing inefficiencies. It is probably for these reasons that, despite the degree of internationalization of business activities, companies tend to concentrate their innovative activities in some strategic areas.
Several studies have confirmed that the tendency to concentrate innovations in the home country of the parent company is a cross industry trend. It has been shown here, that the European semiconductor industry does not escape from it, despite the increasing internationalization
of its value chain and the necessity to adapt technologies to the local markets needs.
This study add, indirectly, evidence on the importance of knowledge assets in determining a multinationals’ competitive advantage. What can be inferred, finally, is that multinational corporations need to find a balance in the management of their innovative activities between concentrated and dispersed structures, within an even more internationalized network.

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Item Type: Article
Subjects: M.U.S. - Miscellanea > Atti Accademia Peloritana > Classe di Scienze Fisiche, Matematiche e Naturali > 2007
M.U.S. - Miscellanea > Atti Accademia Peloritana > Classe di Scienze Giuridiche, Economiche e Politiche > 2007
M.U.S. - Miscellanea > Atti Accademia Peloritana > Classe di Lettere Filosofia e belle Arti > 2007
Depositing User: Dr PP C
Date Deposited: 15 Feb 2013 08:43
Last Modified: 15 Feb 2013 08:43

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