Relationship between R&D Globalization and R&D Virtualization

Nader Ale Ebrahim1, Shamsuddin Ahmed1, Zahari Taha1 and Arash Golnam2 Department of Engineering Design and Manufacture, Faculty of Engineering, University of Malaya, Malaysia
2 1

The R&D Society of Iranian Industries and Mines, Iran

Abstract The globalization of Research and Development (R&D) is not a recent phenomenon. Since the 1960s, for various reasons, companies have been performing some kind of R&D activities outside their home countries. The pressure of globalization competition force producers to continuously innovate and upgrade the quality of existing products. The mega trends like globalization and high demand fluctuation force companies and supply chains to innovate new business models to gain and maintain competitive position. Networking, outsourcing, and information and communication technology are considered as general tools and means to respond to these challenges. The development of powerful ICTs has facilitated globalization. The globalization and the new waves of global trends in economy, services and business along with advances in telecommunications technology have paved the way for the formation and the performance of virtual teams. Virtualization in R&D has recently started to make serious headway due to developments in technology. In this paper the relationship between R&D virtualization and R&D globalization will be discussed. Although most R&D activity has for a long time been concentrated in a few advanced economies, this is now beginning to change and R&D activity is becoming more geographically dispersed and technologically specialized. Finding shows that decision to use a virtual R&D team is often a necessity and not a choice.

Keywords: R&D Globalization, R&D Virtualization, R&D virtual team


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