Title: Localisation of product development based on competitive advantage of location and government policies: a case study of car makers in Brazil

Authors: Ugo Ibusuki; Hideo Kobayashi; Paulo Carlos Kaminski

Addresses: Graduate School of Asia-Pacific Studies, Waseda University, Sodai-Nishiwaseda Bldg 7F, 1-21-1 Nishiwaseda, Shinjuku-ku, 169-0051, Tokyo, Japan. ' Graduate School of Asia-Pacific Studies, Waseda University, Sodai-Nishiwaseda Bldg 7F, 1-21-1 Nishiwaseda, Shinjuku-ku, 169-0051, Tokyo, Japan. ' Escola Politecnica da Universidade de Sao Paulo – EPUSP, Department of Mechanical Engineering, Av. Prof. Mello Moraes, 2231, Cidade Universitaria – Sao Paulo, 05508-900, Sao Paulo – Brazil

Abstract: As global competition intensifies, transnational corporations are internationalising even the most knowledge-intensive corporate functions, such as research and development (R&D). Today, corporations in industries such as automobiles are establishing R&D facilities in selected developing countries. They do this to enhance their efficiency, to access expanding pools of scientists and engineers, and to meet the demands in these countries. These recent trends have important implications for the international division of labour and stress the need for coherent national policies to ensure benefits from this evolution. This study aims to identify the localisation of product development activities based on Porter's (1998) diamond model for competitive advantage of location, and Kuchiki's (2005) flowchart approach for government policies. The analysis is based on case studies of automobile assemblers that have headquarters in Triad markets and facilities in Brazil. Brazilian competitive advantages of location are investigated, and implications for host government policies proposed, from the viewpoint of leveraging location specific advantages for R&D localisation.

Keywords: automobile industry; government policies; product development; competitive advantage; Brazil; localisation; automotive manufacturing; location.

DOI: 10.1504/IJATM.2012.046861

International Journal of Automotive Technology and Management, 2012 Vol.12 No.2, pp.172 - 196

Published online: 20 Aug 2014 *

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