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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 27, No. 1, pp.115-136
ISSN: 1225-0279 (Print)
Print publication date 28 Feb 2014
Received 23 Jan 2013 Revised 10 Feb 2014 Accepted 11 Feb 2014

India as a Destination of the R&D of Multinational Companies: Importance and Management Strategies of Local R&D Centers

Kazuyuki Motohashi
Professor, Department of Technology Management for Innovation, Graduate School of Engineering, The University of Tokyo and RIETI, Japan, Tel: 81-3-5841-1828, Fax: 81-3-5841-1829 motohashi@tmi.t.u-tokyo.ac.jp

JEL Classification: F23, O32

Abstract

While R & D activities of multinational firms in India focus on offshore development, other companies are developing cutting-edge technologies in the country. Hence, product development for the local market has increased with the expansion of the Indian market. The importance of India 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 the effectiveness of the local entity.

Keywords:

Multinational R&D, India, Division of innovative labor

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