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

The internationalisation of knowledge and conversation applied sciences has speeded up because the Nineties in Europe and around the globe. Taking an in depth examine the empirical research of aggressive exchange positions, developments in overseas direct funding and the internationalisation of study and improvement in ICT brings many new insights in regards to the growth, innovation and adjustment within the EU’s such a lot dynamic quarter. furthermore, the research discusses case reports on key avid 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 supplies a brand new and differentiated photograph of eu ICT the place the hyperlinks among telecommunications dynamics, software program innovation and electronic prone are the most important. Outsourcing, insourcing and offshoring are usual parts of a brand new electronic overseas department of labour which require reforms in either the european member nations and on the supranational level.

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

Sample text

It is remarkable that the growth rate of services FDI exceeded that of the manufacturing industry in the 1990s. J. Welfens and Michael Vogelsang world economy in which – after 1985 – multinational companies in manufacturing have increasingly invested abroad. Firms from EU countries that are interested in using similar quality services as intermediate inputs abroad as are used in the home country are a magnet to complementary services providers which therefore invest abroad. One may consider three links of internationalisation (plus migration): x Trade (horizontal or vertical) x Foreign direct investment – this particularly includes not only selling a company – or specific activities of it – to an industrial investor.

Much of the advanced digital services indeed take place in an environment of relatively young firms. From a theoretical perspective, internationalisation of business in technologyintensive (and knowledge-intensive) sectors is related to: x successful expansion in the domestic market: Internationalisation, measured by relative sales abroad, allows technology oriented/knowledge-intensive firms to more easily recover R&D expenditures; x the ability to sell standardized services or goods in national and international markets.

X If factor prices are not already internationally equalized in the absence of fragmentation, the process of fragmentation may be an impulse toward factor price equalization. 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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