THE RISE OF MULTINATIONAL CORPORATION AND THE DEAD OF INNOVATION

A Interdiscipline Approach

Abstract

The article presents the rise of multinational corporation effect toward
innovation in globalization era and how islamic economics views
them—as an alternative perspective in analyzing this problem. “The
rise of multinational corporatian reduces the product innovation”. It is a
assumption and appears as an interpretation to market-mechanism. The
thesis will elaborate in the paper. It means that innovation reduction is
caused by multinational corporation product following market trend. The
thesis, indeed, corrobates John Xiros Cooper’s theory. “The market is simply
an economic mechanism which has no extraordinary powers to shift the
ground of thinking and knowing in any general sense. It is merely, they will
say, a mechanism for allocating resources among producers, a mechanism
for the setting of commodity prices, for distributing goods, for adding value,
for raising capital to sustain enterprise, and so on.” Wrote Xiros Cooper.
To understand the reason why multinational corporation rising makes
innovation weak will use sociological approach, especially epistemology of
market—Xiros Cooper theory.