TheroleofMNEsforinnova1onnetworks

PetraAhrweilerMichelSchilperoordUCDInnova1onResearchUnitIRU

Simula1ngtheroleofMNEsinIrishinnova1onnetworks

•  “Theques1onofhosteconomyimpactsfromFDIhavebeenthoroughlyscru1nized,notleastthroughdifferenteconometricaJemptsatmeasuringtheextenttowhichtechnologyistransferredineitherdirec1onandspilloverinto(…)hostcontexts.Theempiricalevidencefromthisisatbestmixed.(…)

AJemptsatiden8fyingtheimpactofMNEac8vityondifferentterritorialsystems,usingaggregatedata,shouldthereforebesupplementedwithamorefine‐grainedanalysisofstructurallycontextualisedinnova8onbehaviour”(Asheim,Ebersberger,Herstad2010:4)

•  Toshedlightontheassumedbeneficialrela1onshipbetweenMNEsubsidariesandtheirhostcountries´indigenousindustry,wewanttoinves1gatehowimportanttheknowledgehubandfinancialmagnetfunc1onofMNEsisforregionalinnova1onnetworks.HowimportantareMNEs,i.e.theirsubsidiariesinhostcountries,forthelocalenvironmentoftheindigenousindustry?

Ireland´sdualeconomyandR&D‐orientedMNEpolicies

•  (Policy)problem:•  indigenousSMEsdonotexperiencemuch

benefitfromtheIrish‐locatedMNEs(low‐tech,operateinlocalmarkets,donotengageinR&D)

•  innova1veMNEsshowalowR&Dintegra1onintoIrishnetworks,clusters,andinnova1oncentres

•  TopreventMNEsfromleavingIrelandforcompe1ngmanufacturingloca1ons(seeDELL!),andtohelpindigenousindustrytobenefitfromMNEs,IrishpolicymakerstrytoconvinceMNEstolocatetheirR&DinIrelandandtocooperatewithIrishorganisa1ons,forexamplewithIrishuniversi1es

UnitedStates;47%

Germany;10%

UnitedKingdom;11%

France;5%RESTOF

EUROPE;17%

Japan;3%RESTOFASIA‐PACIFIC;2%RESTOF

WORLD;5%

Other;10%

HomecountriesofMNEsinIreland

EmpiricalresearchonMNER&DinIreland

UCDInnova1onResearchUnit(IRU)

•  Iden1fyingandmappingbyempiricalresearch(emerging)knowledgeandtechnologysectorsusingpatent,publica1onandotherquan1ta1vedata(e.g.NanoBioTechinIreland)

•  Analysingthecorrespondingindustrystructuresemergingaroundthesetechnologicalinnova1onnetworksusingsocialnetworkanalysis(SNA)supportedbyquan1ta1veandqualita1vedata

•  Simula1ngtheprocessesandmechanismsintheseinnova1onnetworksusingtheore1cally‐groundedagent‐basedmodelling(ABM)calibratedandvalidatedbyquan1ta1veandqualita1vedata

Usingsocialnetworkanalysis

Preliminaryresultsduetopar1aldata(grants‐DB&ISI)

Ahrweiler,Krueger,‐IRU(UCDCASL)

Top“atleast4projects”companycompanieswhicharecollabora1ngwithUCDmostoken,andamongthemthosewhichcollaboratewithawiderangeofdifferentschoolsin

UCD.:

Policy‐relevantques1onsforresearch

TheIrishcasesetsthesceneforastudyconcerningthebenefitsofhavingMNEsinthelocaleconomy.

Howimportantistheknowledgeintegra1onfunc1onofMNEsas“knowledgehubs”andfinancialmagnetsforregionalinnova1onnetworks?

Doesafirmpopula1oncontainingMNEsperformbeJerintermsofknowledgediffusionandinnova1onperformancethanauniform‐sizepopula1onofsmallandmediumfirmswoulddo?

WhatexactlyaretheeffectsofMNEpresenceandac1vi1es?

OurMNE‐relatedresearchques1onslargelyrefertoknowledgeflows,whicharehardtoobserveempirically.Furthermore,innova1onnetworksaroundMNEsconsistofmanyheterogeneousactorsfollowingdiverserulesetslocatedinalargeparameterspaceofenvironmentalcondi1ons..

Agent‐basedModels

Agent-based Modelling is a computational methodology that allows the analyst to create, analyse, and experiment with artificial worlds populated by agents (computer programs) that interact in non-trivial ways.

•  Agentsareunitsthathavebehaviour•  Theyactwithina(simulated)environment•  Agentscan

–  reacttootheragents,–  pursuegoals,–  communicatewithotheragents,–  movearoundwithintheenvironment

•  Macro‐levelfeaturescanemergefromtheinterac1onofagents

•  Scenariomodelling•  SecondLifeofinnova1onnetworks

Agent‐basedmodellingofinnova1onnetworks

EUprojectSEIN(1998‐2001):Simula1ngself‐organizinginnova1onnetworks

–  Biotech(F)–  Telecommunica1on(UK)–  KIBSinWebdesign(UK)–  Combinedheatandpowertechnologies(NL,D,UK)

EUprojectNEMO(2006‐2009)Networkmodels,governance,andR&Dcollabora1onnetworks

–  R&DprojectsinEuropeanFrameworkProgrammes1‐7

BioTechPharmaprojectwithabigUKfirm

Ahrweiler,Schilperoord,‐IRU(UCDCASL)

hJp://cress.soc.surrey.ac.uk/SKIN/

Scenariocomparisons

Ontheknowledgelevel:

increaseofknowledge:Wecomparethetwopopula1onsintermsofknowledgeamount(knowl)

increaseofknowledgediversity:Thisistheknowledgevarianceofallfirms(sig_knowl)

knowledgeflows(knowledgediffusion):Weuseanadjacencymatrixthatcontainstheknowledgeflowforeachcoopera1on(flow_knowl)

Onthecapitallevel:

increaseofinnova7onperformance:Wecomparethetwopopula1onsintermsofsuccess(numberofinnova9ons)

increaseofcapital:Wecomparethetwopopula1onsintermsofcapitalamount(cap)

sustainabilityofindustry:Wecomparethetwopossiblemodelvariantsintermsofthelife1meofthefirms(average‐age‐at‐death)

Evalua1ngtheparameters:

Scenario1:ModelwithoutMNEsScenario2:MNEsjustfollowgo‐it‐alonestrategiesScenario3:MNEshaveR&Dcoopera1onswiththesurroundinginnova1onnetwork

IRUconcept

Realism Control

Detailsin:Ahrweiler,P.,Schilperoord,M.,etal.,Simula1ngtheroleofMNEsforknowledgeandcapitaldynamicsinIrishinnova1onnetworks,in:M.Heidenreich(ed.):Innova1onandIns1tu1onalEmbeddednessofMul1na1onalCompanies,London:Routledge(forthcoming)

Detailsonsimula1nguniversity‐industrylinksin:Ahrweiler,P.,A.PykaandN.Gilbert(2011):Anewmodelforuniversity‐industrylinksinknowledge‐basedeconomies.In:JournalforProductInnova1onManagementJPIM(SpecialIssueonABM).

DetailsabouttheIRUapproachandresultsin:Ahrweiler,P.(ed.)2010,Innova1onincomplexsocialSystems,London:Routledge

PleasevisitourwebsitehJp://casl.ucd.ie/iru

Focus:theroleofMNEsininnova1onnetworks

•  Simula9ngtheRoleofMNEsinIrishInnova9onNetworksPetraAhrweilerandMichelSchilperoord,IRU/UCD

•  MNCsBetweentheLocalandtheGlobal:KnowledgeBases,ProximityandDistributedKnowledgeNetworksBjornAsheim,LundUniversityandBerndEbersberger,ManagementCenter,Innsbruck

•  TheRoleofMNCsinKnowledgeAccumula9on,Absorp9onandU9lisa9oninIndigenousIrishFirms:ACaseStudyofTheGalwayMedicalTechnologyClusterSatyasibaDas,PaulRyanandOnerTulum,NUIGalway

•  LocalEntrepreneursinGlobalClusters:TheSignificanceofSpa9alandRela9onalPropinquityinNewFirmForma9onMajellaGiblin,NUIGalway

•  AcademicReflec9onsandFutureChallengesinBuildingCollabora9veNetworksinthePharmaIndustryPeterRobbins,TheInnova7onFounda7onandJulianBirkinshaw,LondonBusinessSchool