Technological Factors Affecting MNC'S - Shamal
Technological Factors Affecting MNC'S - Shamal
Technological Factors Affecting MNC'S - Shamal
Affecting MNCs
Presented By
Shamal Firake(37)
Jemy Romany(36)
Pooja Pawar(23)
Dipti Mourya()
Prashant
Mane
(12)
Sanjeev Jha(34)
Harsh Daxini(17)
Agenda
Introduction
History
Motive
& Purpose
Factors
Appropriability
Theory
Key gains from India perspective
Conclusion
Introduction
A
Technology
Introduction
Multinational corporations have long been
recognized as both major creators of technology
and as conduits of technology transfer.
Technology transfer can happen directly, when
the affiliate licenses the technology from the
parent, or indirectly, when the affiliate imports
intermediate goods with embodied technology.
The United States is a major seller of technology,
accounting for around 50% of world royalties and
license fee receipts (World Development
Indicators), and trade in intermediate inputs in
the U.S. accounts for half of total trade in goods
(Miroudot et al. 2009). U.S. Multinational
Corporations (MNC) are important conduits of
technology transfer, with around two-thirds of
royalties and license receipts coming from
intra-.rm transactions and approximately 60% of
History
The
multinational
corporations
have
beginnings in the Industrial Revolution.
their
History
Global
Inventory
Management
---Manufacturing firms on worldwide basis are
finding IT systems useful for managing inventory
at the global level
even though this
management requires tight timing and logistic
capabilities.
Helps
to
improve
customer
satisfaction. New era of cloud computing taking
data and infrastructure management to next
level.
Worldwide sourcing of components and raw
materials
Decentralized
R&D
collaboration
and
design ---- Electronics firms, petrochemical
firms, pharmaceuticals, and others are finding email, teleconferencing, and high speed networks
are vital for global coordination of their R&D
History
Factors
Factors
Patents
Origin
IBM
7534
USA
Samsung
4952
Korea
Canon
4055
Japan
Sony
3224
Japan
Microsoft
2829
USA
Factors
The
R&D
% of Revenue
Spending $
Billion
Volkswagen Germany
13.5
5.2
Samsung Korea
13.4
6.4
Intel USA
10.6
20.1
Microsoft - USA
10.4
13.4
Roche Switzerland
10
19
Appropriability Theory
The environmental factors that govern an
innovator's ability to capture profits
generated by an innovation
The appropriability theory proposes the involvement of
multinational corporations in producing sophisticated
technologies. These corporations do not engage
themselves in producing simple products and simple
technologies which are essential for the developing
countries. The main reason behind it is that
complicated ideas are difficult to imitate whereas
simple ideas are easy to imitate. Thus, there is high
possibility of appropriability problem in case of simple
ideas. Moreover, returns are also higher for
complicated technologies.
Appropriability Theory
The
Appropriability
Theory
appropriability
theory
of
the
multinational corporation emphasizes the
conflict between innovators and emulators of
new technologies.
The term appropriability refers to the
environmental forces that support private
originators ability to grab profits generated
by an innovation.
This term also signifies the returns from
foreign direct investment by creating new
information.
The procedure of safeguarding the gains
from innovation has been examined by the
multinational corporate behavior in the
R&D
Outsourcing Pharmaceuticals,
Engineering, IT, Telecom
Product
Conclusion
Reducing
Business Costs
Improving
Communication
Conclusion
Potential
Increase in Business
Sustainability
Technology can also help businesses to meet the issues of
sustainability. Sustainability is now a high priority and
businesses are keen to reduce waste and be more energyefficient. Using more efficient IT systems can help reduce
waste, recycle more or cut carbon emissions. For example
Logica has created innovative software for Ford which
monitors vehicle emissions. If drivers behave in an
environmentally efficient way, they may benefit from fuel
discounts.
References
www.ccsenet.org/journal/index.php/ijbm/article/v
iewFile/576/555
https://books.google.com/books?
isbn=0024026905
www.freit.org/WorkingPapers/Papers/ForeignInve
stment/FREIT541.pdf
www.ripublication.com/gjfm-spl/gjfmv6n7_06.pdf
http://www.ibef.org/industry/researchdevelopment-india.aspx
http://www.researchgate.net/publication/240695
805_The_Appropriability_Theory_of_the_Multinati
onal_Corporation