Importance of Research & Development in Foreign Subsidiaries

This paper investigates why foreign subsidiaries engage in research and development in host countries. Foreign subsidiaries form an integral part of the MNE and they play a significant role in the success of the organization. Foreign subsidiaries form an integral part of the global strategy for international corporations. Foreign subsidiaries are incorporated in countries other than the country where the parent company is incorporated. There are several cases which indicate the importance of research and development in host nations.