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Disconnected research and development: The (temporary) spatial patterns of innovation

Project description

A deeper understanding of globally splitting R&D activities

There is a spatial split between research and product development. Global firms off-shore their research activities to centres of knowledge but product development may be kept closer to their original locations. There’s a growing concern that such practice channels global knowledge flows and affects the ability of regions to produce innovative output such as climate-friendly engines or vaccines against new viruses, and it has further implications for the economic and social welfare of regions. In this context, the EU-funded DISCO project will explore the situation. Specifically, it will draw on information from patents to build an indicator and a firm typology revealing the global patterns of which type of R&D activity is performed at which locations.

Objective

Scholars recently observe an increasing spatial disconnect between research and development (R&D) activities within global firms, in particular from emerging markets. These firms off-shore their research activities to centers of state-of-the-art knowledge while they might keep product development closer to their original locations. This is of major concern to our society because this spatial split channels global knowledge flows and affects the ability of regions to produce innovative output such as climate-friendly engines or vaccines against new viruses, and has further implications for the economic and social welfare of regions. This project aims at understanding the dynamics of spatial (re-)organization of R&D in relation to firm development as well as economic shocks and social crises, such as the Wall Street Crash of 1929 or the current COVID-19 pandemic. Because we still know too little about how stable this spatial disconnect is, based on initial evidence that it might only temporary exists, DISCO uses information from patents to build an indicator and a firm-typology revealing the global patterns of which type of R&D activity is performed at which locations. The project provides a quantitative measure for the type of R&D activity that goes beyond the qualitative measures often used to study this phenomenon. Applying these indicators to almost 200 years of historical patent data yields insights into the effect of economic shocks on the spatial organization of R&D. Further, it reveals similarities and differences between the development of currently emerging firms and early activities of today’s global players. This can yield new evidence on innovation capability building and successful development trajectories in R&D internationalization. The findings provide a more profound understanding of the temporality of globally splitting R&D activities, with implications for firms and the regional development of emerging as well as established markets.

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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MSCA-IF - Marie Skłodowska-Curie Individual Fellowships (IF)

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) H2020-MSCA-IF-2020

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Coordinator

LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 124 211,36
Address
Houghton Street 1
WC2A 2AE London
United Kingdom

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Region
London Inner London — West Westminster
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 124 211,36
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