Discuss the Role of Multinationals in the Globalisation of Innovation Essay

Discuss the Role of Multinationals in the Globalisation of Innovation - Essay Example Another example is Nintendo Co., Limited that was ranked number five in product improvement in 2009 by Bloomberg (2010). The improved products spread from Japan to Canada, Australia, United States and Gro?ostheim. Top forty most innovative multinationals in the world that has helped spread innovation globally is listed in table 1 (refer to appendices). In recent years, multinationals companies have been spreading to developing nations of Asia to tap into its large and expanding markets. For example, America’s Agilent Technologies began experiencing growth of its scientific and test equipment in Asia than other continents. Therefore, they had to shift base to Asia where they developed a full division of fully fledged research and development infrastructure to make it highly competitive and produce products that best suit the Asian market. Innovation centers are set in foreign countries to enable multinationals understand the foreign markets well to facilitate their entry. How m ultinational globalise innovations There are a number of ways in which multinationals spread innovations to other parts of the world from their country of origin. Practically, innovation spreads across countries or continents inform of foreign direct investments where international companies invest in setting up production facilities in foreign countries, merge or acquire foreign companies, move their expertise to work in international branches, corporate social responsibility or sell technology to other countries or companies. In addition, the mere distribution of improved products or services constitutes transfer of innovations from one place to another. Spread of innovations from one place to another is dictated by economic... This essay approves that there are a number of ways in which multinationals spread innovations to other parts of the world from their country of origin. Practically, innovation spreads across countries or continents inform of foreign direct investments where international companies invest in setting up production facilities in foreign countries, merge or acquire foreign companies, move their expertise to work in international branches, corporate social responsibility or sell technology to other countries or companies. In addition, the mere distribution of improved products or services constitutes transfer of innovations from one place to another. Spread of innovations from one place to another is dictated by economic policies of one or both countries, availability of adequate finances, economic conditions, quality and capability of skilled employees as well as company’s policy on spread of innovation among others. This report makes a conclusion that Microsoft has developed research and development in Beijing. Knowledge-intensive companies are increasing the number of their employees in developing countries. India is hosting about a quarter of Accenture employees. According to Wooldridge, large multinational companies develop innovation markets in the developing economies because developing economies have huge market potential and high economic growth rate. In addition, they are few costly legacy systems in developing countries and resources are relatively abundant and cheaper. For example, about five million and three million people graduate in China and India annually respectively, consequently most multinational have shifted their companies to Asian countries.