How do MNEs invent? An invention-based perspective of MNE profitability

Abstract Although MNEs create inventions both internally and collaboratively with partners as well within across countries, we know very little about the effects that combining such inventive activities have on their profitability. This study develops an invention-based perspective considers how MNEs' profitability is influenced by ways they organize development of organizational boundaries (internally or collaboratively) geographic (within countries). postulates not merely driven advantageous technological endowments but also assets been created. Accordingly, it explains why specific combinations two affect likelihood creating breakthrough differently, provide different revenue cost advantages, MNEs’ It further cross-country contribute more to when are internalized, while within-country profitable created collaboratively.