Effects of R&D internationalisation on R&D investment of firms in South Africa
Date
2016
Authors
Mashamba, Mulima Godfrey
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Abstract
Using a multiple case study approach of three R&D performing firms in South Africa,
this research explored whether current R&D internationalisation trends are having a
positive or negative effect on South Africa’s investments in research and development
(R&D).
The research found that, contrary to theoretical proposition, the three firms have not
relocated core parts or their entire R&D to technologically advanced countries abroad
as a result of their increased international exposure. Instead, they have broadened
their scope of R&D to integrate foreign-based knowledge inputs. The research also
found that increased internationalisation causes firms to alter their approaches to R&D
exploitation through incremental improvements on- and/or finding new applications ofexisting
technologies and creating new markets for them. Three motives influenced
the firms, namely to access new knowledge not available locally, to access human
capital and to exploit existing capabilities in new markets. Where firms reduced their
local R&D investment, such activities were not being relocated to abroad.
Increased competition fostered firms’ R&D efficiency. Firms reviewed their internal
structures to maximise intellectual property (IP) value; they adopted stricter methods
for evaluating new R&D requirements; and they afforded higher priority to R&D with
better potential for success. Most of this is meant to exploit existing knowledge.
The findings are applicable to Emerging Economy Multinational Enterprises (EMNEs)
that already have well-established R&D capability at home and experience operating
in the international R&D environment.
Description
A research report submitted to the Faculty of Commerce, Law and Management,
University of the Witwatersrand, in partial fulfilment of the requirements for the degree
of Masters of Commerce (Development Theory and Policy)
15 April 2016
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Citation
Mashamba, Mulima Godfrey (2016) Effects of R&D internationalisation on R&D investment of firms in South Africa, University of the Witwatersrand, Johannesburg, <http://wiredspace.wits.ac.za/handle/10539/22368>