Author: Martín Obaya.
Year: 2015.
This working paper is based on an article discussed at the 11th Globelics Conference in Ankara, Turkey.
In the last three decades, multinational corporations (MNC) have undergone a far-reaching reorganisation that resulted, firstly, in a reorganisation of their business activities around regional areas, and secondly, in an increasing decentralisation of their knowledge-creating activities. As a result of this evolution, some subsidiaries in developing countries have benefited from this process and been able to accumulate technological capabilities. Through the examination of an automotive MNC operating in MERCOSUR, this article examines how innovation activities are organised among subsidiaries operating in a regional integration agreement among developing countries, and what are the driving forces shaping this process. Empirical findings show that a highly hierarchical division between the subsidiaries has been established by the parent company and that knowledge-creating activities are geographically concentrated in one single country.
Keywords:
Automotive industry; Product development, MERCOSUR; Innovation management
Download: GWP2015-02
