By Neil Hood (auth.)
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Additional resources for The Multinational Subsidiary: Management, Economic Development and Public Policy
A. 7 Notes: 1 41 The categories were defined as follows: Basic research, to discover new knowledge in electronics; Applied research, to discover new commercially viable knowledge for new product innovations; Major development work, to produce, adapt or modify new products or processes; Minor development work, to produce, adapt or modify existing products or processes; R&D on specific materials and/or techniques; R&D for customer service support. Company respondents’ rankings shown as 2 (very important), 1 (important), (−) not important or not applicable.
The implication of the results for Scotland seems to be that the Scottish plants have been viewed in a majority of cases as bases for extending distribution rather than modifying or enlarging product lines. The presence of R&D at plant level is not, furthermore, to be taken as a proxy for product autonomy within the plants. Indeed in interviews several examples were found of considerable product exclusively at plants, derived from successful intra-group tendering for product responsibility rather than from local R&D activity.
To date there has been little research work aimed at explaining the underlying causes of these changes in foreign affiliates. Indeed the whole question of the relationship between inward investment and UK technology has not been fully explored. , 1973; Dunning, 1976), suggesting that the trend may be towards less subsidiary dependency. Given the state of knowledge in this area and the general evidence reviewed in the last few paragraphs it is difficult to regard these perspectives as anything other than complacent.
The Multinational Subsidiary: Management, Economic Development and Public Policy by Neil Hood (auth.)