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Globalization of R&D and Developing Countries
  • Arash Golnam
  • Nader Ale Ebrahim
  • Ali Ghazizadeh
Reflecting a broader trend towards the off shoring of services, a number of developing countries are attracting foreign direct investment in research and development. Transnational corporations, including the ones headquartered in developed countries, are selecting developing countries as locations for such activities. With the off shoring of research and development, firms aim to access the skills of new locations, adapting products to local markets and reducing their costs, in response to competitive pressures, technological changes and a more liberal trade and investment environment. In particular, information and communication technologies have had a profound effect on the way economic activities, including research and development, are organized, enabling firms to allocate tasks on a global scale through intra-firm information networks. At the same time, keeping up with new developments in information and communication technologies is a major challenge for developing countries wishing to accelerate their economic development. This paper aims to elaborate key issues related to the trends towards globalization of research and development and their implications for developing countries, and highlights how the establishment research and development abroad affect the transfer of technology. In addition to this , it serves to explain the main potential benefits of foreign direct investment and entails how policies in home and host countries influence the allocation of such activities and what the possible economic impacts are and finally what benefits and costs are involved in the process of globalization of R&D.
  • Globalization of R&D
Publication Date
June 26, 2007
Citation Information
GOLNAM, A., ALE EBRAHIM, N. & GHAZIZADEH, A. 2007. Globalization of R&D and Developing Countries 6th Conference of Industries and Mines R&D Centers- R&D Globalization. IRIB Int'l. Conference Center, Tehran, Iran: The R&D Society of Iranian Industries and Mines.