Multinational Corporation Strategy: Implications for Research and Development

This paper examines the strategic issues associated with the establishment and operation of multinational corporations (MNCs) in foreign markets. It focuses on the implications of MNC strategy for research and development (RD 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 MNCs to a 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.