Why don't you use it: The under-utilisation problem of international R&D

By this paper we explore an interesting and paradoxical phenomenon: Despite firms possessing and controlling resources to conduct internaitonal R&D, most innovations still come from headquarters. Taking the firm as unit of analysis, we analyse 183 foreign research and 260 foreign development units of 93 Swiss and German firms. We show that the respective extent of international research and international development is contingent on specialised subsidiary resources and on determinants of the firm's strategic commitment to engage in international innovatory activities.