Dispersing research and development activities to many locations aroun

QUESTION

Dispersing research and development activities to many locations around the world allows a firm to stay close to the center of leading-edge activity to gather scientific and competitive information and to draw on local scientific resources.

Indicate whether the statement is true or false.

ANSWER

TRUE
Dispersing research and development (R&D) activities to many different locations around the world allows a firm to stay close to the center of leading-edge activity to gather scientific and competitive information and to draw on local scientific resources. This may result in some duplication of R&D activities, but the cost disadvantages of duplication are outweighed by the advantages of dispersion.