Engineering Globalization Engineers Week February 21, 2006 Dr. Timothy Greene.
Globalization of Technology Dr Henry Loewendahl
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Globalization of Technology Dr Henry Loewendahl VP North America, fDi Intelligence, Financial Times Ltd Managing Director, WAVTEQ Ltd INSME Annual Meeting “The Governance of Innovation" 9:50-11:00 23 May 2013, Izmir, Turkey No part of this material may be copied, distributed or used without the prior written permission of Henry Loewendahl
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Globalization of Technology Dr Henry Loewendahl VP North America, fDi Intelligence, Financial Times Ltd Managing Director, WAVTEQ Ltd INSME Annual Meeting “The Governance of Innovation" 9:50-11:00 23 May 2013 , Izmir, Turkey. - PowerPoint PPT Presentation
Transcript of Globalization of Technology Dr Henry Loewendahl
Globalization of TechnologyDr Henry Loewendahl
VP North America, fDi Intelligence, Financial Times Ltd
Managing Director, WAVTEQ Ltd
INSME Annual Meeting“The Governance of Innovation"
9:50-11:00 23 May 2013, Izmir, Turkey
No part of this material may be copied, distributed or used without the prior written permission of Henry Loewendahl
1. Trends in R&D investment2. Corporate strategies and competitiveness factors3. Policy implications
Contents
Foreign Direct Investment Trends in R&D
Date range: 2003-2013Definition: Job-creating greenfield FDI projects in R&DSource: fDi Markets database, fDi Intelligence, Financial Times Ltd
Global trends in R&D FDI
• Over 7,600 R&D projects creating >1m direct jobs tracked• R&D more resilient to global conditions • Increased its share of global FDI to a record 6.2% 2013 YTD
Global market shares of R&D
Top Countries1. USA (44%)2. Germany (9%)3. Japan (7%)4. France (5%)
Top States1. California (13%)2. New York (5%)3. Kanto (5%)4. South East UK (5%)
Top Regions1. North America (46%)2. Western Europe (35%)3. Asia Pacific (16%)4. Other Regions (3%)
ORIGIN
Top Countries1. India (17%)2. China (15%)3. USA (8%)4. UK (6%)
Top Cities1. Bangalore (6%)2. Shanghai (5%)3. Singapore (4%)4. Beijing (3%)
Top Regions1. Asia Pacific (47%)2. Europe (33%)3. North America (11%)4. Latin America (5%)
LOCATION
Industries and Companies
Top Clusters1. ICT & Electronics (43%)2. Life Sciences (14%)3. Transport Equipment (11%)4. Industrial (6%)5. Creative Industries (5%)
CLUSTERS
Top Sub-Sectors1. Software Publishers (15%)2. Custom Programming (9%)3. Semiconductors (7%)4. Pharma Preparations (6%)5. Telecom Equipment (4%)
SUB-SECTORSTop Companies1. Microsoft2. Henkel3. Du Pont4. IBM / Samsung / Blackberry5. Tata / Intel / Honeywell
COMPANIES 2012
Top Companies1. IBM2. Microsoft3. Intel4. Siemens / HP / GE5. Du Pont
COMPANIES 2003-12
Two-thirds of investing companies had turnover >$1 bn. 10% had turnover <$25m
Corporate Strategies & Competitiveness Factors
Date range: 2003-2012Definition: Job-creating greenfield FDI projects in R&DSource: fDi Markets & fDi Benchmark, fDi Intelligence, Financial Times Ltd
Globalization or Regionalization?
Source: fDi Markets database, fDi Intelligence, from Financial Times Ltd, based on information on 2516 projects
• Companies primarily establish regional R&D centres• Nearly ¼ of centres are for domestic markets• Especially R&D in China and USA• Nearly one-fifth are global centres
Location determinants
Source: fDi Markets database, fDi Intelligence, from Financial Times Ltd, based on 1,648 projects with motives specified
• Search for skills• Meeting market and customer needs• Accessing specialist industry clusters • University/researcher knowledge and talent pool
FDI #1 location determinantSize of R&D labour force
Source: Dr Henry Loewendahl analysis based on fDi Markets and fDi Benchmark databases for Canada cities
FDI #2/3 location determinantsMarkets
Source: Dr Henry Loewendahl analysis based on fDi Markets and fDi Benchmark databases for Canada cities
FDI #3 location determinantSize of R&D cluster
Source: Dr Henry Loewendahl analysis based on fDi Markets and fDi Benchmark databases for Canada cities
FDI #4 location determinantSize of talent pool and research
Source: Dr Henry Loewendahl analysis based on fDi Markets and fDi Benchmark databases for Canada cities
FDI #9 location determinantCosts are negatively correlated!!
Source: Dr Henry Loewendahl analysis based on fDi Markets and fDi Benchmark databases for Canada cities
Policy Implications
• R&D projects account for over 6% of global FDI so have become a very important source of investment – especially for emerging markets
• Companies typically have a regional R&D strategy, so understanding your competitive position regionally is key
• Innovation-driven investors can have a major impact on the economy. Microsoft estimates 1 job it creates leads to 30 spin-off jobs compared to a 1:3 ratio typical in manufacturing
• To attract R&D investors requires a combination of available skills, markets, clusters, and universities
• Most investment still comes from the developed economies, although major EM companies are playing a bigger role
• Major corporations dominate R&D investment, but still 1 in 10 R&D projects come from SMEs often linked to new VC
Implications
Contacts
Dr Henry LoewendahlVP North America, Representing fDi Intelligence, Financial Times Ltd Managing Director, WAVTEQ LtdE-mail: [email protected]/MSN: hloewendahlLinkedin: Henry LoewendahlTwitter: @hloewendahlSkype: +44 (0) 203 239 3224 (redirects to my current phone)W: www.fdiintelligence.com / www.wavteq.com
