A traditional British automotive company is considering moving its R&D department from the UK to a highly successful cluster of innovation in the US. The company is losing market share in Europe and China and the performance of the internal R&D department is low. The company is struggling to develop radical innovations. Brexit has also amplified the level of risks in the supply chain. By choosing to move to this successful cluster of innovation, the board of directors aims to enable the company to develop a range of dynamic capabilities.
Critically discuss this planned strategy by supporting your answer with examples of dynamic capabilities. How will the move to this cluster of innovation enable the company to develop its dynamic capabilities?
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