Unexpectedly Intriguing!
July 19, 2005

It's a trend that's been incubating for some time, but the move by large international companies to create new products using non-home country based research and development (R&D) professionals is now becoming more visible. The July 25, 2005 issue of Fortune has an interesting article on how these companies are looking to develop new products and services by utilizing the non-home-country-based intellectual capital at their disposal. The article focuses on five companies: U.S.-based General Electric (GE) and Motorola and Intel, Swiss pharmaceutical giant Novartis, and Dutch conglomerate Philips, examining how each are using foreign-based talent to increase the R&D productivity of their corporations.

Here's a quick rundown of the examples of the kind of work that each company profiled in the article are doing by using their overseas divisions to develop new products and services:

How Global Companies Use Foreign R&D
Company Where and What They're Doing
General Electric
  • Operates R&D centers in Bangalore, Bangladesh, Shanghai, China and Munich, Germany.
  • Developing wind energy generating technology.
  • 28% of the companies 7,000 R&D employees work in more than 20 countries.
  • Developing the Centrino family of wireless technology.
  • Shanghai, China.
  • Provides funding and technology transfer to the Shanghai Institute of Materia Medica to investigate traditional Asian remedies for potential development into new medicines.
  • Worldwide
  • Tapping customers for new product ideas and conducting both home and field research into how products may be improved.

Forrester Research estimates that only five percent of the Fortune Global 500 companies have taken their innovation development global at present, and predicts that the number of companies doing so will only increase. Forrester Research CEO George Colony explains why in the Fortune article:

"There’s simply not enough qualified talent at home for global companies to keep pace."

The reasons for this lack of available home-grown talent will be explored on another day....


About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.