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India as a destination of multinational’s R&D: Growingimportance and management strategy of local R&D centers

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  • Motohashi, Kazuyuki

Abstract

While R&D activities of multinational firms in India focus on offshore development, some companies are developing cutting-edge technologies. In addition, product development for the local market has increased with the expansion of the Indian market. India’s importance as an R&D center is predicted to increase, and multinationals in advanced countries must improve the competency creation mission of R&D entities in India. To do so, attracting exceptional talent and running highly autonomous organizations with reduced control from headquarters are critical. However, within a corporate-wide innovation strategy, fostering unity through social controls such as international personnel rotations and training, close communication, and permeation of the corporate culture are essential to having an effective local entity.

Suggested Citation

  • Motohashi, Kazuyuki, 2014. "India as a destination of multinational’s R&D: Growingimportance and management strategy of local R&D centers," MPRA Paper 57281, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57281
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    File URL: https://mpra.ub.uni-muenchen.de/57281/1/MPRA_paper_57281.pdf
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    References listed on IDEAS

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    1. Daron Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizio Zilibotti, 2007. "Technology, Information, and the Decentralization of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1759-1799.
    2. Basant, Rakesh & Mani, Sunil, 2012. "Foreign R&D Centres in India: An Analysis of their Size, Structure and Implications," IIMA Working Papers WP2012-01-06, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. K Kim & J-H Park & J E Prescott, 2003. "The global integration of business functions: a study of multinational businesses in integrated global industries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 327-344, July.
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    Cited by:

    1. Farok J. Contractor & Vikas Kumar & Charles Dhanaraj, 2015. "Leveraging India: Global Interconnectedness and Locational Competitive Advantage," Management International Review, Springer, vol. 55(2), pages 159-179, April.

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    More about this item

    Keywords

    multinational R&D; India; division of innovative labor;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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