Global R&D Strategies of German MNEs in the Changing World

This paper traces the changes in the co-invention patterns of the largest German companies from 2019 to 2023 using patent statistics. The assumption about the withdrawal of R&D activities from emerging economies is tested. Based on descriptive statistics and binary logistic regression, we observe three trends. The first trend concerns the increase of sole patenting activities in the subsidiaries in emerging economies, especially in China. We also observe the decrease in the number of patent filings generated by the headquarters and subsidiaries in advanced economies. There is an increase in co-invention with inventors from external organizations, including by subsidiaries in emerging economies. There is a plethora of possible explanations. One of them is the benefits of exercising a recombinant advantage implying embeddedness in local innovation systems and collaborations with external partners. Another explanation is the nature of corporate decision-making, including loss-aversion that allows for high levels of risk toleration.