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Managing Innovation in Multinational Firms

In: Innovation and the Multinational Firm: Perspectives on Foreign Subsidiaries and Host Locations

Author

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  • Alessandra Perri

    (Universita’ Ca’ Foscari Venezia)

Abstract

As the breadth and sophistication of foreign R&D activities increase, the complexity of organizing geographically distributed R&D units augments. Headquarters have the power and the responsibility to initiate the process of R&D internationalization, to guide its evolution and to orchestrate the MNC’s geographically distributed R&D activities. This chapter reviews and discusses the literature on MNC headquarters’ decisions regarding the geographical dispersal of MNC innovative activities. First, it analyses centripetal and centrifugal forces that influence the choice to internationalize R&D. Second, it describes the different typologies of FDI in R&D focusing on their mandated objectives and activities. Third, it systematizes the factors influencing location choices. Finally, it focuses on the organizational arrangements that can be deployed to effectively orchestrate the R&D geographical dispersal.

Suggested Citation

  • Alessandra Perri, 2015. "Managing Innovation in Multinational Firms," Palgrave Macmillan Books, in: Innovation and the Multinational Firm: Perspectives on Foreign Subsidiaries and Host Locations, chapter 2, pages 34-60, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-55544-1_3
    DOI: 10.1057/9781137555441_3
    as

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