1. Comment: Internationalisation of R&D - German viewpoint Christopher Palmberg, Research Institute of the Finnish Economy (ETLA) Empirically rich analysis of topical issue: position of incumbent NIS in new global division of labour in R&D Potential limitations: industries/firms are multi- technology, choice of R&D location indicator, exclusion of software almost by default Possible interpretations/hypothesis (cf. Mariani 2002): –science-based R&D increasingly detached from production –application-oriented R&D stickier in this sense … compare e.g. with chain-linked-model (Kline & Rosenberg 1986), which are the possible implications?

2. Global distribution of industrial production by regions 1750-2003 Source: Bairoch (1982), ETLA

3. Can incumbent NIS maintain/develop their global position in science-based R&D? Small absolute size/scarce resources (is economies of scope enough?) – competition from BRIC countries Complementarities between science-based and application-oriented R&D –Schumpeterian creative combinations: science/application mixtures; high/low-tech mixtures; tangible/intangible mixtures –will advanced lead users of science-based R&D also relocate? Internationalisation of science-based R&D – internationalisation of educational and public research system Incumbent NIS at a disadvantage in terms of unfavorable age distributions?

4. …Finnish viewpoint as measured through patents Inventor team grown in size, mainly entry of US, Germans and Swedes Low share of foreign patents but these score higher by originality Share highest in ICT, electronics (Nokia); lowest in mechanical Ongoing reseach: –inward vs. outward R&D –nature of R&D –M&As vs. alliances –good or bad? 1987-901991-95 Belgium56%67% UK50%56% Holland54%56% Switzerland43%52% Canada40%44% Sweden31%42% France18%33% Germany17%21% Finland 1985-89 13% 1990-94 17% 1995-99 21% Share of foreign patents of MNEs at USPTO* *Affiliation of first inventor foreign Palmberg & Pajarinen (2004), ETLA Discussion Paper no. 916