Paloma Miravitlles

The Role of the Environment in the Location of R&D and Innovation Activities in Subsidiaries of Foreign Multinationals

Abstract The internationalisation of R&D activities in foreign countries different from their multinational headquarters is a difficult decision. The local environment plays a crucial role in that decision. Based on a case study methods and the examination of seven subsidiaries with excellent research centres in Spain, the results show that aspects related to technology supply have a greater power of attraction than aspects related to market demand. However, the Spanish environment is more attractive in terms of demand factors than supply factors. As a result, Spain occupies an intermediate position in attracting foreign direct investment in R&D and innovation.

Competitiveness of Spanish foreign subsidiaries

Purpose – The purpose of this study was to approach issues such as what type of value chain activities are carried on by the subsidiaries of multinationals located in Spain, where and how their resources and capabilities are generated and how these are transferred within the multinational. Creating resources and capabilities within a subsidiary of a multinational company enables it to gain competitiveness and therefore greater power of decision within the corporation. Design/methodology/approach – This research conducts a descriptive analysis of the value chain in Spanish subsidiaries. A population of 1,072 firms has been identified. To gather primary data, a questionnaire was designed based on international value chain and resources and capabilities literature. Findings – Analysis of the data gathered from 125 subsidiaries has enabled researchers to map out the profile of the value chain in these companies. The results indicate that the principal source of resources and capabilities is the subsidiary its...

A Double-Network Perspective on the Evolution of Subsidiary R&D Role: A Matter of Dual Embeddedness

The International Business literature has recently sought to determine the drivers of R&D role changes in foreign subsidiaries over time. Yet, very few studies have examined network effects to explain this evolution. To fill this gap in the literature, the present work focuses on changes in subsidiary capabilities and on the dynamic mechanisms by which their R&D role might evolve, especially, as a consequence of their interaction with a variety of networks. Thus, the core aim of this paper is to summarize the findings from the previous literature as a first step for developing a general theoretical framework that integrates internal and external network embeddedness and to discuss its implications for the evolution in the R&D role of subsidiaries. The literature review highlights the need to investigate how subsidiary R&D roles evolve as a consequence of their being simultaneously engaged in both intra-organizational and local networks.

Are the BRIC countries overtaking intermediate countries in the race for international R&D? The case of Spain

ABSTRACT The emergence of Brazil, Russia, India and China (BRIC) as international locations for foreign direct investment in R&D is a sign that multinationals are relocating their technological activities to new territories. This trend may weaken the supremacy of the developed countries until now considered leaders in innovation, and may mean the loss of the competitive advantages enjoyed by the countries considered intermediate innovators. This paper examines the situation of Spain as a typical intermediate economy and compares it to its main competitors among the BRICs. Based on eight case studies of subsidiaries with R&D centres in Spain, we conclude that the policies adopted by certain emerging economies to develop their national innovation systems are proving effective and that these countries now pose a threat to intermediate economies. However, the BRICs still lag behind in terms of the security of their institutional framework; this situation leaves intermediate countries in an advantageous position.

Reducing Psychic Distance Through Springboard Subsidiaries: An Exploratory Case Study

Abstract The aim of this study is to explore how springboard subsidiaries affect the psychic distance between the headquarters (HQ) of multinational companies (MNCs) and a distant target region. The study applies a single case study methodology to analyse a springboard subsidiary located in Spain that helps its German HQ to pursue opportunities in a psychically distant Latin American region. The findings suggest that springboard subsidiaries help MNCs to reduce the perceived psychic distance between their HQ and a target region due to (1) their intermediate psychic proximity in both directions (i.e. to the HQ and the target region) and (2) their location outside the target region, which makes them somewhat ‘impartial’ and not involved in intra-regional conflicts; the study also shows that the sum of psychic distance stimuli between HQ’s home country –springboard subsidiary’s country and springboard subsidiary’s – Latin American countries is actually smaller than the direct psychic distance between HQ’s home country and Latin American countries. No previous studies have explored the effect of springboard subsidiaries on psychic distance.

Descriptive Analysis of Competitiveness of Spanish Subsidiaries

Creating resources and capabilities within a subsidiary of a multinational company enables it to gain competitiveness and therefore greater power of decision within the corporation. This research conducts a descriptive analysis of the value chain in Spanish subsidiaries. Analysis of the data gathered from 125 subsidiaries has enabled to map out the profile of the production and R&D value chain activities in these companies. The results indicate that the principal source of resources and capabilities is the subsidiary itself. Moreover, the experience built up over time is basic to the creation of skills in all the activities in the value chain.