Fox School of Business Professor Dr. Ram Mudambi and his team of researchers received a prestigious grant from the National Science Foundation (NSF) to host the First International Business, Economic Geography and Innovation (iBEGIN) Conference at the Fox School. It was preceded by workshops in 2013 and 2014.
The two-day conference, held Nov. 13-14 at Fox’s Alter Hall, was sponsored by the NSF, with support from Temple’s Center for International Business Education and Research (CIBER) and the Fox School Institute for Global Management Studies. It was aimed, Mudambi said, toward using research from his team’s iBEGIN initiatives as the foundation for a long-lasting research community focused on the intersection of the three fields of international business, economic geography, and technology/innovation studies.
“In a very deep sense, all society is based upon human connections. We’re social animals,” said Mudambi, the Frank M. Speakman Professor of Strategic Management and Perelman Senior Research Fellow at Fox. “This conference applied that theory to the sphere, and business and economics. We developed the concept that the human experience is built on human socialization, and use it to understand how connections across space create value.”
The conference featured three keynote speakers, who addressed attendees Nov. 14 in an open-to-the-public setting. The keynotes included:
- Dr. John Cantwell, Rutgers University, Distinguished Professor of Management and Global Business, and editor-in-chief of the Journal of International Business Studies
- Dr. Harald Bathelt, University of Toronto, Canada Research Chair Professor in Innovation and Governance, and editor of Journal of Economic Geography
- Dr. Mark Lorenzen, Copenhagen Business School, Professor of Innovation and Organizational Economics, and Director of the Danish Research Unit of Industrial Dynamics (DRUID)
“These three keynote speakers have been great supporters of our iBEGIN work, and I could not have been more delighted to host them,” Mudambi said. “John is the editor of the top international business journal, Harald is the editor of the top economic geography journal, and Mark is the director of DRUID, one of the world’s largest research networks in innovation studies. To have them under one roof at one conference was a truly unique opportunity.”
The iBEGIN Conference is being promoted as part of GlobalPhilly 2015, a two-month international exposition, featuring events geared toward the promotion of international arts, commerce, education, heritage, and more in Philadelphia. Mudambi said papers were submitted to the conference from all over the world, including from: Denmark, France, Italy, Japan, Korea, Spain, Sweden, the United Kingdom, the United States government, the United States Federal Reserve, and more.
Mudambi’s ongoing iBEGIN initiative is a collaborative effort with professionals in centers around the world, including: Denmark’s Copenhagen Business School, Italy’s Politecnico di Milano and University of Venice Ca Foscari, the Indian School of Business, Henley Business School at the University of Reading (UK), and many others.
The next research project on the horizon for Mudambi and his globally dispersed research team involves battery power, a progression of yet another long-running iBEGIN segment on renewable energy and sustainability. The team has documented the important role that emerging economies like China and India are playing in the innovative landscape of the wind turbine industry, but batteries are the key to unlocking the potential of these renewable energy technologies.
“Batteries are the steam engine of our age,” Mudambi said. “We have ways to produce energy, but we have no way to harness it and store it. Today, if we had to run our planet on stored battery power, we could run perhaps 1 percent of our power applications. Imagine if you could run the whole planet on batteries. It’s a problem that, once solved, will revolutionize society.”
–Christopher A. Vito
Using the tools and postulates of Game Theory as a foundation, it is possible to better understand -and recommend- the best practices necessary to create effective strategic alliances at the domestic and international levels. The principles that guide successful international or global alliances have challenges that do not exist at the domestic level, however, the approaches to promote cooperative partner-behavior remains relatively the same. This research has direct implications for firms seeking to establish new alliances as well as validate ideas derived from Game Theory.
Markets have their own gravitational pull, as a result of which the innovation value-chain tends to coalesce in spaces that customers inhabit. The rising prominence of emerging markets, for example, is being accompanied by a similar shift in the innovation eco-system to China and India. A corollary of this is a fundamental change in the directionality in knowledge and resource flows. Whereas earlier, it was typically from the West to the East, the trend seems to be changing in recent years as a more polycentric world emerges, one in which there are multiple centers of economic activity and knowledge generation.
In spite of advances in transportation and communications, clustering remains most critical, and is consequently prevalent, in knowledge-intensive fields. Multinational enterprises (MNEs) that increasingly base their value creation and competitive advantage on knowledge-intensive activities are key participants in clusters, affecting both the nature and evolution of local innovative activities. This research traces the origins of research on geographic clusters, identifies the seminal contributions focusing on the role of MNEs, discusses potential problems inherent to this area of inquiry and develops an organizing framework for new research. There is a two-dimensional role of MNEs in knowledge clusters. From the perspective of the cluster, MNEs as flagship firms stimulate the local business environment and enhance agglomeration economies. As knowledge pipelines MNEs contribute to (and sometimes even form the genesis of) the external linkages of the cluster. From the perspective of the MNE, these firms clearly recognize clusters as the peaks in the “spiky” knowledge landscape of the host economy (i.e. valuable knowledge is distributed across geography), whose internal networks create both opportunities for new value creation as well as challenges in terms of the leakage of intellectual property. The integration of knowledge from multiple such local contexts is the key source of MNE competitive advantage.
Today’s multinational companies (MNCs) recognize that to have breakthrough innovations they must access knowledge that is developed internationally. One of the best ways to tap into this knowledge is with local R&D facilities in international centers of technical excellence. However, leveraging international regional knowledge and incorporating it into the MNCs existing knowledge networks is exceptionally difficult. Studying the best practice for creating and managing exploration and exploitation subsidiaries and integrating them into a global R&D network allows us to better understand the value of research and development.