Discuss the role of multinationals in the globalization of innovation Essay

Discuss the role of multinationals in the globalization of innovation - Essay Example They eventually stand as essential driving forces that trigger the need to change and pursue innovation. Globalization of innovation is a very important aspect in today’s global economy. Today, it has become the forefront of the success of every economy as it centers on exploitation of technology and technological collaboration (Archibugi and Iammarino 317; Nam and Barnett 1471). This is evident on how developing countries have positively adopted technological innovation from developed countries (Nam and Barnett 1471). Considering the point that developing countries are not hesitant to adopt technological innovations, they have become involved as the centre point of globalization of innovation. Multinationals therefore have great ideas on the versatility of developing countries to consider their technologies, which in the end has been moving forward to innovation as many key players compete for a global goal. For this reason, as multinationals try to expand, exporting, foreign ownership, outsourcing and community resilience have become crucial considerations of productivity (Zhang and Smith 310; Wilson 1218). In this case, wages for instance have strong link up with productivity, exporting and foreign ownership - the very important issues associated with foreign direct investment. This is the most basic from the start. The international firms would want to invest in production or business overseas for them to expand their territory and avail of some other economic advantages (Gomory and Baumol 540; Sato and Fukushige 62). Let us take the case of those companies trying to invest in China for them to avail of the country’s resources such as the work force and its associated lower cost. There are specific inputs that are necessary in the creation of product or service offerings. They have linked up costs. A company producing products that are too expensive because of the associated cost in the value chain may experience