The Characteristics and Roles of Overseas Subsidiary R&D Laboratories

Abstract

This is the first of three chapters which present information derived from the subsidiary questionnaires. It seeks to define some of the major characteristics of subsidiary laboratories and to delineate their roles in the group. The next two sections are concerned with the role played by such laboratories by distinguishing between three types of laboratory (with the nature of their functional or other links being a key defining feature) and between six types of research performed. The major focus of Chapter 6 will be to elaborate on the influences underlying these subsidiary laboratories’ roles and growth. Starting with section 5.4 the next five parts of this chapter present data on certain characteristics of these overseas units. The first of these looks at a number of possible origins for such units in MNE groups, whilst the next reviews the extent to which they are associated with local production facilities of the group. Subsequent sections present information on the size of the units, their age, and the lengths of research projects undertaken by them. Section 5.10 deals with the procedures used in such units to derive their levels of R&D expenditure, and the next section analyses the sources of such funding.