1. INTERNATIONALIZATION OF TRANSNATIONAL CORPORATIONS’ RESEARCH AND DEVELOPMENT: ANALYSIS OF THE ROLE OF BRICS AFFILIATES Célio Hiratuka Fernando Sarti Second International Workshop of the BRICS Project 25, 26 and 27, April, 2007 Hotel Glória, Rio de Janeiro, Brazil

2. Internationalization of TNCs technological activities Taxonomy of R&D laboratories PurposeScale Exploitation of country advantage Major Determinant of Location Adapting products and processes to host country markets Small Home country advantage Size and growth of domestic market Monitoring scientific and technological progress abroad Small Home and Host country advantage Quality of NSI in host and home country Generating new products and core technologies outside the home countries Large Host country advantage Quality of NSI in host country Source: Patel e Vega, 1999

3. United States transnational corporations’ sales and R&D expenditures. Total and abroad. In US$ millions and %. Source: NEIT/IE/UNICAMP, based on data from the Bureau of Economic Analysis

4. R&D expenditures abroad by majority-owned foreign affiliates of U.S. parent companies. Developed and developing countries Source: NEIT/IE/UNICAMP, based on data from the Bureau of Economic Analysis

5. R&D expenditures in developing countries by majority-owned foreign affiliates of U.S. parent companies: Latin America and Asia. Source: NEIT/IE/UNICAMP, based on data from the Bureau of Economic Analysis

6. Majority-owned foreign affiliates of U.S. parent companies – Share of selected developing countries in R&D expenditures abroad * 2002 Source: NEIT/IE/UNICAMP, based on data from the Bureau of Economic Analysis

7. Majority-owned foreign affiliates of U.S. parent companies – Share of selected developing countries in R&D expenditures and sales abroad, 2004 * 2002 Source: NEIT/IE/UNICAMP, based on data from the Bureau of Economic Analysis

8. U.S. TNCs – R&D expenditures/sales ratio, total and affiliates abroad Source: NEIT/IE/UNICAMP, based on data from the Bureau of Economic Analysis

9. Majority-owned foreign affiliates of U.S. parent companies – R&D expenditures by industry, 2004 Source: NEIT/IE/UNICAMP, based on data from the Bureau of Economic Analysis

10. Majority-owned foreign affiliates of U.S. parent companies – R&D expenditures by industry and coutry, 2004 Source: NEIT/IE/UNICAMP, based on data from the Bureau of Economic Analysis