What is it about?

Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects.

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Why is it important?

The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities.


The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need to be reverted in the headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies.

Prof. Dr. Dennys Eduardo Rossetto
SKEMA Business School

Read the Original

This page is a summary of: Innovation capabilities for global R&D projects in subsidiaries, European Journal of Innovation Management, May 2019, Emerald,
DOI: 10.1108/ejim-08-2018-0185.
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