iBEGIN* Workshop 2024

Digital Connectivity, High-Knowledge Migrants, and Innovation:
Substitutes, Complements, and the Dawn of AI

Henley Business School, University of Reading, UK
11 April 2024

Deadline for extended abstract: 21 February 2024

Extended abstracts/papers can be submitted via email at [log in to unmask] (Subject: iBEGIN Submission)

Call for papers

In the global knowledge economy, high-skill workers are the alchemist's gold, a resource more precious than ever. Multinational enterprises (MNEs) rely on these talented individuals to unlock innovation, fuel growth, and navigate the complexities of international markets. Yet, amidst a tightening talent pool and stringent immigration controls, MNEs find themselves at a crossroads, juggling two critical tools for unlocking the potential of high-skill knowledge workers: geographic mobility and digital connectivity. This year’s iBEGIN workshop delves into the intricate intertwining of these approaches, exploring their interplay, substitutability, and complementarity within the dynamics of corporate innovation.

At the heart of MNE success lies the intricate process of knowledge transfer. Creative solutions, groundbreaking products, and disruptive services all germinate from the cross-pollination of ideas across borders and cultures. Much of this vital knowledge resides in the fertile minds of high-skill workers. Traditionally, MNEs facilitated this exchange by setting up R&D units and physically relocating knowledge workers to centers of innovation. This geographic collocation was once deemed essential to leverage diverse perspectives and nurture creativity.

However, the global stage has shifted. Many of the MNEs’ R&D hubs are in advanced economies. These economies are now beset with immigration restrictions that create friction on the migratory pathways of high-skill talent. In response, MNEs have turned to using digital tools – the ever-evolving suite of communication and collaboration technologies. Cloud-based platforms, holographic meetings, and real-time data sharing now bridge geographic divides, blurring the lines between physical proximity and intellectual closeness.

The question naturally arises: are these two approaches – physical collocation through migration and virtual collocation through digital connectivity – substitutes or complements? The answer, like the complex nature of innovation itself, is nuanced and dependent on context. In some instances, digital tools offer a compelling substitute for traditional relocation. When repetitive tasks or standardized knowledge transfer are at play, virtual platforms can facilitate seamless collaboration without the logistical hurdles and human resource complexities of international migration. Moreover, for geographically dispersed teams working on discrete projects, digital connectivity offers agility and cost-effectiveness.

However, the magic of innovation often arises from the serendipitous collisions of ideas, and unplanned exchanges that spark unforeseen breakthroughs. These moments are most likely to occur within the crucible of collocation, where physical proximity fosters deeper understanding, spontaneous interactions, and the subtle exchange of tacit knowledge that defies digital transmission. For complex, interconnected endeavors requiring close synchronization and deep collaboration, physical collocation remains the irreplaceable catalyst.

Furthermore, the nature of the innovation context plays a crucial role in determining the optimal strategy. In highly dynamic industries with rapidly evolving knowledge bases, digital connectivity allows for the on-demand access to talent, regardless of location, offering flexibility and responsiveness. Conversely, for long-term, knowledge-intensive projects within stable environments, collocation fosters the development of trust, shared identity, and a deep understanding of the nuances of the project, facilitating greater coherence and commitment.

As the landscape of innovation shifts further with the emergence of generative AI tools, both migration and digital connectivity will continue to evolve. AI has the potential to not only enhance the capabilities of collocated teams but also to bridge the gaps between geographically dispersed individuals, potentially blurring the lines between the two models even further. Understanding the intricate interplay between these tools and their adaptability to different contexts will be crucial for MNEs seeking to harness the full potential of their high-skill workforce in the age of intelligent machines.

In conclusion, the question of whether migration and digital connectivity are substitutes or complements is not a binary one. Instead, MNEs must view them as a spectrum of possibilities, their choice guided by the specific context of their innovation ecosystem, the nature of the knowledge being exchanged, and the ever-evolving landscape of technology. By mastering the art of orchestrating physical and virtual proximity, MNEs can unlock the full symphony of innovation, ensuring that their knowledge alchemists, wherever they may be, can continue to weave the magic of groundbreaking solutions for the world.

Papers submitted to the iBEGIN workshop will be considered for a special issue of the journal ZFW – Advances in Economic Geography – https://www.degruyter.com/journal/key/zfw/html?lang=en

The iBEGIN workshop is free of charge and it is organised in conjunction with 9^th Reading IB Conference (12-13 April 2024)

A £150 discount on the 9^th Reading IB Conference fees is available for a limited number of iBEGIN participants.

URL: https://www.henley.ac.uk/research/centres/the-dunning-centre-for-international-business/9th-reading-conference-2024

* iBEGIN is the acronym for International Business, Economic Geography, and Innovation and is a network of researchers with the overall aim to develop a holistic view of the organization of economic activity across space.