Summary This paper argues that design innovation constitutes an important means for multinational corporations (MNCs) to manage the standardization-adaptation dilemma in product development for international markets. Through design innovation MNCs can accommodate the heterogeneity of different...

The situation in which a multinational firm compensates for comparative weakness in home-country R&D by locating vital R&D activities in foreign countries with a stronger R&D base has generally been considered a fairly marginal phenomenon. Yet home base-compensating R&D by MNCs is more prevalent...