Country of Origin Effect: A Comparative Research of Toyota and PSA Peugeot Citroen

The home bias in the automotive industry, a comparative research of Toyota and PSA Peugeot Citroën.

TABLE OF CONTENTS

INTRODUCTION P.3

RESEARCH DESIGN P.3

BACKGROUND OF TOYOTA P.4

BACKGROUND OF PSA PEUGEOT CITROËN P.6

RESEARCH RESULTS P.8

DISCUSSION & CONCLUSION P.19

REFERENCES P.21

FIGURE 1: MOBILITY, PEOPLE AND SUSTAINABILITY P.5

FIGURE 2: TOYOTA – R&D INTERNATIONALIZATION P.9

FIGURE 3: TOYOTA PATENT PORTFOLIO P.10

FIGURE 4: TOYOTA 20 MOST PATENTED TECHNOLOGIES P.10

FIGURE 5: CAR BRANDS PATENT DISTRIBUTION P.11

FIGURE 6: PEUGEOT PATENT PORTFOLIO P.12

FIGURE 7: TOYOTA R&D LOCATIONS P.14

FIGURE 8: PEUGEOT R&D LOCATIONS P.17 INTRODUCTION

The last decade has been characterized by an increasing focus on the globalization within the various departments of multinational businesses. The urge of firms to adopt a global business strategy in order to sustain its competitiveness in the current markets is also visible in the R&D area, as many have launched globalization initiatives motivated by the opportunities to attract foreign talent, create competitive cost structures, and create market proximities. Mergers and acquisitions further stimulate the adaptation and integration of R&D activities.
The automotive industry, however, is showing a somewhat distinguished picture. As scientific knowledge and technological expertise are becoming increasingly regionalized, and technologies are changing more rapidly than ever, automotive manufacturers are forced to keep a tight eye on their R&D efforts (Calabrese, 2001). This relates to the argument that R&D projects should sometimes be kept within the home base for security reasons. In

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