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(1) Discuss and evaluate the role of foreign direct investment in the development of the innovative capabilities of developing or ’emerging’ countries. Illustrate your answer with a relevant example.

(2) Why are Knowledge Intensive Business Services firms (KIBS) thought to be important to the innovation systems of countries? To what extent do service firms innovate differently compared to manufacturing firms?

(3) Examine the theoretical arguments in favour and against the internationalization and globalization of R&D activities by Multi National Corporations (MNCs). Why is the globalization of innovation a matter of concern for countries?

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