The Drivers of Transnational Subsidiary Evolution: The Upgrading of Process R&D in the Irish Pharmaceutical Industry

V<sc>an</sc> E<sc>geraat</sc> C. and B<sc>reathnach</sc> P. The drivers of transnational subsidiary evolution: the upgrading of process R&D in the Irish pharmaceutical industry, <italic>Regional Studies</italic>. This paper contributes to the theory of subsidiary evolution in large corporations through an examination of the driving forces behind upgrading of process research and development (R&D) activities in the Irish pharmaceutical industry. Drawing on a survey of pharmaceutical plants and interviews with transnational pharmaceutical plants, it is shown that vigorous growth is occurring in the incidence of process R&D. The paper supports the utility of a multilevel systems perspective on subsidiary evolution. The external environment, internal environment and subsidiary drivers are seen to drive upgrading in a systemic way. The primary drivers for the subsidiaries' enhanced role are located in the global external environment.