Global Business Environment Prasada Reddy Centre for Entrepreneurship University of Oslo, Norway

Economic Liberalization Policies governing trade and investments International institutional mechanisms (e.g. WTO, EU, bilateral agreements) Growing intra-industry trade Sectoral policies affecting innovation (e.g. Intellectual property rights, clinical trials, etc.) Global harmonization of consumer preferences in some industries

Technological changes Changes in techno-economic paradigm Emergence of new science-based pervasive technologies Even old products incorporate new technologies Multi-disciplinary inputs for innovations ICT as a driver and facilitator of globalization

Global competition Oligopolistic competition in major industries Emergence of innovative small firms in niche areas Shorter product life cycles Increasing R&D costs Access to global markets and resources New competitors

Corporate responses Rationalization of corporate structures: from multinational to international to transnational approach World/regional product mandates Global intra-organizational networks Global inter-organizational networks University-industry collaboration

Implications for innovation 1 Innovation can be located wherever the resources are available Centre-for-global: innovations for global markets centralized in headquarters Local-for local: innovations for local markets Locally-linked: innovations in each location for global application Globally-linked: collaboration between different local units for global innovations (Barlett and Ghoshal, 1991)

Implications for innovation 2 Modularity and divisibility of innovation process Specialization within the innovation process R&D outsourcing Emergence of technology markets and research firms

Implications for innovation 3 University spinoffs Regional/national government policies Cluster development/science parks New sources of financing for innovation Importance of intellectual property rights