Innovation And Internationalization Essay

What is innovation and how does it relate to internationalization? The literature on the two topics has evolved exponentially during the past decades, however, the difference of the research results makes it so that the relationship between innovation and internationalization is not fully understood. Relying on a systematic review of empirical studies published in the past two decades, this literature review propose and discuss questions which brings to the fore the relationship between the innovation process and internationalization. The articles selected for review were chosen on the basis of their academic intergrity, relevance to the topic under review, the date of publication, the scope and methodology of the research, quality of the

The economist and business expert, Joseph Schumpeter have argued that industries must incessantly revolutionize their products by continuously looking for better ways to satisfy their customers with improved quality, better and enduring services at a price that is beneficial to both parties. Taken at a face value, innovation will appear to be crucial to the continued success of any organization. The common trend in most of the articles read is that innovation often lead to internationalization; i.e. if a company want to become a player in the international market, it must make changes to its product that will make it more appealing to an international audience. This argument poses some

According to the research by Filippetti et al (2013) it is indeed very likely that the two phenomena are linked by a cumulative causation mechanism. More innovative firms can better compete and thus become more internationalized. Moreover, internationalized firms are exposed to diverse cultures and innovation environments from which they can learn. Both these processes are likely to enhance their innovation performance. Both internationalization and innovation at the level of firms affect the countries in which the firms are based or in which they operate. In essence, the relationship between innovation and internationalization is more of an iterative process rather than a case of one leading to the