The paper considers the participation of MNCs in the development of Israel's innovative economy. In view of the fact that the creation of centers for corporate R&D is the main format for the participation of MNCs in the Israeli economy, this is the focus of the research. In the theoretical part of the paper, some positive and negative aspects of the participation of foreign MNCs in the economic activities of the host country are considered. The conducted research has shown that the whether the role of foreign MNCs in the host economy is positive or negative in many respects depends on what format of interaction the state and the society of the given country will adopt. Israel managed to form a sufficiently effective format for the development of its economy, based on the full encouragement of the establishment of R&D centers for foreign MNCs. The paper also indicates the negative elements of the existing interaction.
Highlights:
MNCs can be both extremely useful for developing the economy of innovation in the host country, and counterproductive in this aspect. If the local authorities, together with the expert scientific and business community, are not able to form a system of relations with global corporations in such a way that the latter value the environment in which they work in this country, see the prospects for the development of the local innovation economy, they simply will try to suck out of it all juices in the form of promising ideas and, most importantly, promising personnel, only worsening the situation in the national economy of the host country.
By the beginning of the XXI century governmental bodies, through the implementation of various programs, have done a lot to form a sufficiently effective system of innovative economy in Israel in general, and to attract foreign high-tech MNCs in particular to active cooperation.
The activities in Israel of foreign MNCs consist, by and large, of 3 components - the production of different key components for their products, the establishment of R&D centers and the acquisition of Israeli start-ups.
Multinational high-tech corporations can benefit the Israeli high-tech system not only through the activities of research centers located here, but also through strategic cooperation with Israeli start-ups. These joint activities contribute to the development of Israeli companies in markets and activities both in Israel and throughout the world, and provide the Israeli industry with knowledge, experience and skills at all stages of the value chain of technological development.
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