The Role of R&D Resource Commitment in Accessing Co-location Advantages

Access to local knowledge is of critical importance to the innovative performance of multinational enterprises. In this paper we study the relationship between the resource commitment of a multinational's subsidiary and its access to local resources in the form of knowledge or equipment/facilities. The study finds that high resource levels are less important for access to co-location advantages than conventionally assumed, while the level of commitment associated with allocated resources appears consistently to be important. We also find support for the claim that more flexible governance arrangements promote access to co-location advantages in asset exploration. The findings may provide policy-makers new insight regarding the type of R&D activities that would both benefit from and deepen the potential of networks they are trying to establish in their country/region. https://research.cbs.dk/en/publications/the-role-of-rampd-resource-commi...