INTRODUCTION

Globalization has become most influenced topics undertaken by many studies, with

people in different countries demanding its effects on the development of both their economy as

well as their Technological Innovation. Having a continuous innovation and high mass capital

consumption determine the status of a country. It is the most fundamental and satisfying standard

set when to describe and state that a country has already at the peak of becoming develop and or

has already developed .

Globalization has been speeded across borders and in the world economy. In return,

there has been rapid improvement in the spread of technology to peripheral and semi-peripheral

nations.

Technological innovation in a world economy context and in corporate with Research

and Development still manage to further its influenced in a wider area of developed and

developing countries. As cited from Hrisztov (2016) multinational companies internationalize

the comparatively low-value activities of their value chain. Evidence shows however, that

globalization of high-value activities such as research and development, is gaining popularity

since the 1970s as well (Dunning and Narula, 1995).

“Research and experimental development (R&D) comprise creative work undertaken on

a systematic basis in order to increase the stock of knowledge, including knowledge of man,

culture and society, and the use of this stock of knowledge to devise new applications” (OECD,

2002, p. 30). R&D is not the only component of innovation, but it is the most developed

statistical indicator of industrial innovation activities (UNCTAD, 2005). It covers (1) basic

research, which aims to acquire new knowledge without particular application plan, (2) applied
research, which is also about gaining new knowledge, but directed towards a specific goal and

(3) experimental development that includes activities in order to produce new materials, products

and systems or improve already existing ones (OECD, 2002).

There is a growing interest in the role of internationalization of R&D activities in many

modern countries, in which it becomes the caused for an increasing development. The context for

investing to Research and Development within foreign countries has becoming excessive. It is

mainly influenced by the implications of R&D in one’s country. Research and Development

(R&D) investment is seen as a fundamental driver of high-tech small and medium-sized (SME)

firm performance. However, the same driver may be constraining growth among non-high-tech

SMEs as it increases the level of risk faced by such firms (Booltink & Saka-Helmhout, 2017).

Additionally, Multinational corporations (MNCs) are increasingly considered to be the

main conduit of new technologies between countries. It is generally assumed to possess the

advanced technology (production technology, marketing and management technique, etc.) they

tend to exploit in many host countries and, consequently, other firms, particularly the host

country’s, expect to learn from this technology so as to get the necessary strength to face the

foreign competition (Hamida & Piscitello, 2013).

As the April 2018 issue of the International Monetary Fund's World Economic Outlook

says, globalization has substantially bolstered the diffusion of knowledge and technology. The

increased international competition associated with globalization may also contribute to overall

prosperity, as it strengthens incentives to adopt new technologies and to innovate (Canuto, 2018).

Globalization is not a single phenomenon, but a catch-all concept to describe a wide

range of forces. Here, we have applied a rather wide definition of globalization which conforms
to that provided by Gidders (1990:64); “the intensification of world-wide social relations which

link distant localities in such a way that local happenings are shaped by events occurring many

miles away and vice versa. Thus, by globalization we mainly refer to a high degree of

interdependency and interrelatedness among different and geographically dispersed actors. In

principle therefore there might be a higher globalization even with the same level of

internalization (Archibugi and Iammarino, 1998, Cantwell and Lammarino, 1998).

The term is used to describe the phenomenon of globalization experienced by the world

of invention and innovation. Strictly speaking, the economic application of new ideas and

knowledge is not only technical, and so far as it can also be organizational, managerial

institutional, the new general purpose of technologies have been shown to intensify the science-

technology interface and to be inextricably associated with the complex processes of

organizational, institutional and infrastructural change (Freeman, 1994). Technology in the sense

of knowledge directed towards the solution of specific human problems, transmitted from one

culture to another or from one society to another and is certainly not a novelty. Even though

learning processes are long and cumbersome, technological knowledge transmission among

people as met less resistance than occurred on the cases of cultural, religious, social or political

habits.

New technologies play a fundamental part in making globalization possible. Without

aeroplanes telephones, satellites, computer, and televisions it would not be possible to transfer

information from one place to another. Thus, allowing for the speed and intensity which

characterizes the modern world. This give rise to a rate of diffusion and transfer of knowledge

which is greatly superior to that of the past. In other words, it was the new technologies, that

allow the emergence of the global village.

 The concept of globalization of innovation comes to be the zip between the two

fundamental phenomena of modern economies: the increase international integration of

economic activities and the raising importance of knowledge and economic processes. The

spread of knowledge and technology across borders has intensified because of globalization. In

emerging markets, the transfer of technology has helped to boost innovation and productivity

even in the recent period of weak global productivity growth.

Globalization has amplified the spread of technology across borders in two ways: first,

globalization allows countries to gain easier access to foreign knowledge. Second, it enhances

national competition including as a result of the rise of emerging market forms in this

strengthens firms incentives to innovate and adopt foreign technologies.