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Multinational corporation strategy: Implications for R&D policy
RW Edwards
Department of Management, Faculty of Business and Economics, Monash University, VIC
A Howell
Department of Management, Faculty of Business and Economics, Monash University, VIC
Abstract
This paper examines the strategic issues associated with the establishment and operation of multinational corporations (MNCs) in foreign markets, focussing on the implications of MNC strategy for research and development (R&D) activity within the MNC's headquarters and its subsidiaries. The literature of three themes in international business is relevant to this research: long term models of internationalisation; MNC subsidiary roles and functions; internationalisation of R&D . The paper discusses these themes in relation to the Australian context, which has received little attention and proposes research issues in international R&D. It concludes that government policy which aims to attract MNC's to the host country as part of a strategy for economic development can optimize the benefits by distinguishing between types of companies, focusing particular attention on those which give their subsidiary responsibility for new product development, manufacturing and export marketing.
"Government policy providing assistance for MNC's establishing regional headquarters would attract valuble investment if they gave additional attention to firms offering global product mandates."
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