Transnational Corporations - Volume 26, Issue 3, 2019

Innovation is a key competitive advantage for companies in the 21st century. R&D and other innovative work was traditionally carried out by MNEs in their home countries, although it spread to some affiliates in other developed countries in the late 20th century, and to some emerging markets more recently. This paper analyzes the assignment of innovative activity, particularly R&D, by MNEs to their affiliates in emerging markets. Using both aggregate data produced by government organizations and company-specific interviews and published commentaries, we find that MNEs assign more responsibility for R&D and innovation to affiliates in emerging markets that have larger markets, lower human resource costs, greater overall R&D activity and to some extent greater activity of the company in question. China and India are huge exceptions to the rule that MNEs tend to assign only development work to emerging market affiliates: they are increasingly assigning core R&D to these two large countries. Corporate strategy can be adjusted to take advantage of low-cost R&D capabilities, particularly in these large markets, and to pull innovations from those affiliates throughout the rest of the firm. Public policy to attract R&D by MNEs should look at offering companies better access to sizable markets, offering incentives for R&D activity and building up R&D activity in the local economy, by companies and government alike.

The Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs) ascribe specific roles to business organisations and have thus invigorated discussions on the link between the activities of multinational enterprises (MNEs) and international development. In the development of the MDGs and the SDGs, the human rights-related capabilities approach to development has featured prominently. Yet, so far, international business research on the links between MNEs and sustainable management has largely overlooked the human rights aspect. This paper integrates human rights into the debate on the role of business activities in sustainable development. Drawing on the business and human rights (BHR) governance approach, which analyses the governance mechanisms and structures that govern the relationships between human rights duty-bearers and rights-holders in the business and human rights field, the paper argues that BHR governance can act as moderator in the design, implementation and evaluation of business policies and practices seeking to contribute to the advancement of the SDGs. It shows how BHR governance may support, positively influence and reinforce the impact of private sector activities on international sustainable development.

This article examines the key aspects of the legal infrastructure design of special economic zones (SEZs), with reference to the best practice of the Hong Kong Special Administrative Region (Hong Kong SAR) under “One Country, Two Systems” and the Basic Law. It discusses some recent initiatives of the Hong Kong SAR in respect of innovations in dispute resolution mechanisms and creative use of modern technology to illustrate how SEZs can respond to contemporary challenges and opportunities. In particular, this article discusses the Guangdong–Hong Kong– Macao Greater Bay Area, which sheds light on a new model of collaboration and partnership between SEZs, and explores the possibility and potential for SEZs to serve as the building blocks for the eventual establishment of a new paradigm of greater special economic region.

Across developing countries, the agricultural sector is an essential source of economic growth, employment, poverty reduction and food security. Women play a vital role in agriculture, yet there is little research focusing on the impact of rising investment in the agricultural sector on the role of women in this sector and on gender equality. Many investors tend to be located in remote areas and have an impact on the life of the most vulnerable farmers, especially when few alternative employment opportunities exist. In this article, we present the role of women in agriculture and we explore the impact of large agricultural investment on gender equality in developing countries. Given the data limitations, we rely on both primary and secondary data, and provide examples of gender-sensitive practice carried out by the private sector to minimize the risk of leaving women behind. The article concludes with suggestions for corporate actions and government policies and maps out avenues for future research.

The UNCTAD-Eora Global Value Chain (GVC) database offers global coverage (189 countries and a “Rest of World” region) and a timeseries from 1990 to 2018, reporting on key GVC indicators. This paper explains the methodology for compiling the UNCTAD-Eora GVC database, including nowcasting employed in the estimation of recent years; second, it provides a comparison of the results against other value-added trade databases, with a focus on the OECD Trade in Value Added (TiVA) dataset; and lastly discusses the relevance of GVC data for the analysis of globalisation patterns, particularly at the intersection between trade, investment and development.