Internationalization as Innovation Driver in Services

The chapter discusses the interaction between internationalization and innovation. These are processes that can enforce each other over time. Received theory on internationalization does not explain how firms within new sectors, such as internet service providers, make use of their internationalization process as a way to compete on innovation. Additionally the chapter brings in the spatial aspects of how internationalization is conducted and what firms are looking for at specific locations to facilitate their innovation process and obtain a sustainable competitive advantage. Two mini-cases of two internet service providers are used to show how new theoretical explanations are needed.