R&D Internationalization of Foreign-Owned Subisidaries in Spain: Exploitation or Creation of Competitive Advantages?

Abstract

Although multinationals are reluctant to locate their R+D activities on their foreign subsidiaries, the effort done by some Spanish subsidiaries to attract this function have, on some occasions, its well-deserved reward. This article presents the resources and capabilities of the foreign multinational subsidiaries located in Spain that have fulfilled this task. The results obtained from the investigation of 125 firms show that the internationalization of R+D in Spanish subsidiaries is basically due to competence exploiting (market demand reasons) and not to competence creating (technological supply criteria).