Innovation in multinational companies – An empirical analysis of innovation networks between globalisation and localisation

Innovation in multinational companies is complex and involves heterogeneous actors. The importance of drawing upon globally-dispersed knowledge and entering new markets leads to globalisation of innovation activities. Simultaneously, localisation favours a close and personal interaction and thus the transfer of implicit knowledge. A redefinition of the concepts of globalisation and localisation is necessary. Then, these apparently opposite orientations can be merged into a single strategy in which they even reinforce each other. An empirical analysis of innovation in a major German multinational company illustrates the organisation of such a combined strategy.