MNE-subsidiaries' innovation capability building and learning in emerging economies: firm-level evidence from the ICT industry in Brazil
by Paulo N. Figueiredo; Klauber N. Brito
International Journal of Innovation and Learning (IJIL), Vol. 11, No. 1, 2012

Abstract: This paper is concerned with innovation capability accumulation paths and the role of learning processes in MNE-subsidiaries in emerging economies. Drawing on evidence from subsidiaries of the ICT industry in Brazil (1996-2008) we found: 1) variability across the subsidiaries in terms of the manner in which they improved their innovation performance over time; 2) such differences reflected heterogeneity across the subsidiaries in terms of their learning efforts to acquire knowledge through inter-organisational knowledge links; 3) although all seven subsidiaries developed such links, they achieved differing levels of innovation performance; 4) innovative subsidiaries responded pro-actively to the incentives from the local industrial policy. The paper suggests that in order to accumulate capabilities to move from 'initially imitative' into highly innovative subsidiaries, the international intra-MNE knowledge links cannot be handled independently from local knowledge links.

Online publication date: Thu, 08-Dec-2011

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