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| Author: | Un, C. A. |
| Title: | Research notes and commentaries: The advantage of foreignness in innovation |
| Journal: | Strategic Management Journal
2011 : NOV, VOL. 32:11 p. 1232-1242 |
| Index terms: | foreign subsidiary companies international business technological innovation subsidies incentives r&d subsidiary companies competition |
| Language: | eng |
| Abstract: | This article argues that subsidiaries of foreign multinational companies (MNCs) have an advantage of foreignness in innovation, or they are more innovative than domestic companies. The subsidy argument suggests that subsidiaries are subsidized in their innovation effort by the MNC. The incentive argument proposes that subsidiaries are subject to two sets of unique and converging pressures. These pressures drive subsidiaries to become more successful at changing their research and development investments into innovations. |
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