Internationalisation of European ICT Activities: Dynamics of by Huub Meijers, Bernhard Dachs, Paul J.J. Welfens

By Huub Meijers, Bernhard Dachs, Paul J.J. Welfens

The internationalisation of knowledge and verbal exchange applied sciences has sped up because the Nineties in Europe and around the world. Taking a detailed examine the empirical research of aggressive alternate positions, developments in overseas direct funding and the internationalisation of analysis and improvement in ICT brings many new insights concerning the enlargement, innovation and adjustment within the EU’s such a lot dynamic area. furthermore, the research discusses case experiences on key gamers in ICT and indicates significant coverage conclusions for a box thought of basic within the context of the EU’s Lisbon time table. The theoretical and empirical research provides a brand new and differentiated photo of ecu ICT the place the hyperlinks among telecommunications dynamics, software program innovation and electronic prone are an important. Outsourcing, insourcing and offshoring are ordinary components of a brand new electronic overseas department of labour which require reforms in either the ecu member international locations and on the supranational level.

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Extra resources for Internationalisation of European ICT Activities: Dynamics of Information and Communications Technology

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However, many digital services must be very customer specific so that economies of scale play a limited role. To some extent, economies of scale can be exploited for the basic product – say the core algorithm – while customization requires specific adjustment involving the employment of skilled labor. CHAPTER II. Concepts and Theory 27 (including direction of sales from subsidiary (bold arrows)) N-Sector Country I T-Sector Country II T-Sector Value-added Firm T1 N-Sector TN13* T12* T11 Country III Source: Welfens (2006b) Fig.

Indeed that part of ICT which is hightechnology intensive deserves special attention. It is particularly interesting to analyze the internationalisation performance of high-technology start-ups and to contrast internationalisation of ICT high-technology start-ups and young non-ICT high technology firms. A comparative survey study on German and British hightechnology start-ups (Burgel/Murray/Fier/Licht, 2000) has shown that internalisation activities are all the more likely to occur if the company x is older x is larger (measured in terms of employment at start-up) x conducts regular R&D projects and innovation activities x has founders with international managerial experience Moreover, the internationalisation of “new technology-based firms” is less likely to be observed if the company: x sells products highly customized to the need of the demand side of a small number of customers x sells software services as opposed to manufacturing products.

A high share of modern ICT manufacturing goods typically falls into the category of: x science-based high quality products which represent high R&D intensity and often high human capital intensity as well; x differentiated products which are complex customer-tailored goods consisting of many components Modern ICT services are characterized by: x high complexity of the underlying software where the digital product itself can easily become a me-too product once the respective software price has fallen so much that the software becomes broadly available to the public; x high quality uncertainty which makes the respective digital service become a kind of “confidence good”, whose quality is difficult to assess and for which market failure is looming.

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