Emerald Publishing

Table 1

Structure of R&D laboratories of the sample subsidiaries

Number of subsidiaries	R&D Laboratories	Laboratory roles
40	Locally Integrated Laboratories (LILs)	To play a role in the creation of new products and/or process patterns for our distinctive markets, primarily regional or global ones LILs principally expand the scope of the subsidiary by augmenting the competitive product range of the MNE group. Subsidiaries with LILs may undertake greater levels of responsibility and authority and acquire a strategic role in terms of knowledge creation and product innovations within the MNE group
10	Internationally interdependent Laboratories (IILs)	To carry out R&D activity as part of a wider MNE group-level research program, working within global networks to provide basic research inputs to the MNE group IILs enable respective subsidiaries to operate as ‘global creators’ taking strategic positions in interdependent research networks. They extend the scientific and technological base of the MNE group IILs are similar to LILs in that they develop high quality innovative activities, are internationally oriented and enjoy global internal network economies. The main difference is that they are oriented toward basic research, whereas LILs aim at applied research to directly meet the needs of the market.
72	Support Laboratories (SLs)	Adaptation of existing products and/or processes to make them more suitable to our local markets SLs provide small or marginal innovation contributions supporting the activity of market-seeking subsidiaries. They work in isolation from other foreign R&D labs of the MNE and interact only with local subsidiary functional departments
49	No R&D laboratories	The subsidiaries normally produce and sell products of the parent's established product range without any modification. The lack of R&D laboratory facilities indicates passive technology players that do not engage in innovation activity. In this case, the subsidiary explicitly depends on the MNE parent's technology to locally produce and sell the corporate group's product
171

Number of subsidiaries	R&DLaboratories	Laboratory roles
40	Locally Integrated Laboratories (LILs)	To play a role in the creation of new products and/or process patterns for our distinctive markets, primarily regional or global onesLILs principally expand the scope of the subsidiary by augmenting the competitive product range of the MNE group. Subsidiaries with LILs may undertake greater levels of responsibility and authority and acquire a strategic role in terms of knowledge creation and product innovations within the MNE group
10	Internationally interdependent Laboratories (IILs)	To carry out R&D activity as part of a wider MNE group-level research program, working within global networks to provide basic research inputs to the MNE groupIILs enable respective subsidiaries to operate as ‘global creators’ taking strategic positions in interdependent research networks. They extend the scientific and technological base of the MNE groupIILs are similar to LILs in that they develop high quality innovative activities, are internationally oriented and enjoy global internal network economies. The main difference is that they are oriented toward basic research, whereas LILs aim at applied research to directly meet the needs of the market.
72	Support Laboratories (SLs)	Adaptation of existing products and/or processes to make them more suitable to our local marketsSLs provide small or marginal innovation contributions supporting the activity of market-seeking subsidiaries. They work in isolation from other foreign R&D labs of the MNE and interact only with local subsidiary functional departments
49	NoR&D laboratories	The subsidiaries normally produce and sell products of the parent's established product range without any modification. The lack of R&D laboratory facilities indicates passive technology players that do not engage in innovation activity. In this case, the subsidiary explicitly depends on the MNE parent's technology to locally produce and sell the corporate group's product
171

Source(s): Table created by authors