In the context of global R&D, we connect literature on knowledge management to a network-based theoretical framework helpful to analyse and explain the impact of globalisation of R&D on innovation performance. This framework is applied to two case companies, both global leaders within their respective industries, in order to analyse the extent to which their strategic globalisation of R&D activities, from Scandinavia to China, has contributed to increased innovation performance. Pack Tech moved R&D to China and immediately arranged innovation competitions between three selected universities in order to improve their innovation performance within distribution equipment. Med Tech–– did on the other hand not co-operate as closely with local universities when it transferred R&D to China – and captured less innovation performance improvements. Our findings suggest that close interaction and cross-fertilisation with local knowledge networks are of eminent importance for newly established R&D offsprings to improve overall innovation performance of their globalised R&D network.
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