A review of the existing evidence on the degree of internationalization of the innovative activities of MNEs reveals three main trends. These are the continuing reliance of firms on the home country as a base for innovation, structural changes in MNEs towards more affiliate autonomy, and a small...

This paper argues that a focus on the institutional underpinnings of MNE strategy and behavior is not only consistent with the emerging literature on dynamic capabilities, but it also serves to highlight the unique role played by MNEs in generating new organizational routines by combining...