Internationalization as a driver of innovation: The case of Puerto Rico's pharmaceutical industry

Abstract

The paper studies how internationalization is perceived to drive innovation within the MNC context. Much has been investigated about the connection between both concepts, yet a significant amount of literature has focused on the role of innovation as a driver of internationalization. After identifying this investigative pattern, the study seeks to broaden the current research scope by exploring the reverse relationship. The empirical study adopted a qualitative approach, where a multiple case study was conducted through semi – structured interviews.

From a theoretical standpoint, a comprehensive literature review has been conducted concerning the concepts of internationalization and innovation, both of which have been key elements in the expansion of current business practice and literature. The paper goes on to investigate what academia has found regarding how the former drives the latter. Further, from an empirical angle, the study makes a contribution to existing literature by conducting a detailed research about innovation and internationalization within Puerto Rico’s pharmaceutical industry, focusing on internationalization – related factors that are perceived to influence its innovation. Finally, an analysis of the data is conducted and conclusions based on the studied empirical contributions are presented. Throughout the paper, several elements are identified as essential within the studied relationship, particularly knowledge, made evident throughout the theoretical and empirical findings.