Today’s multinational companies (MNCs) recognize that to have breakthrough innovations they must access knowledge that is developed internationally. One of the best ways to tap into this knowledge is with local R&D facilities in international centers of technical excellence. However, leveraging international regional knowledge and incorporating it into the MNCs existing knowledge networks is exceptionally difficult. Studying the best practice for creating and managing exploration and exploitation subsidiaries and integrating them into a global R&D network allows us to better understand the value of research and development.
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