Despite the growing involvement of multinational enterprises (MNEs) in foreign-based research and development (R&D), there has been little research comparing subsidiaries of foreign MNEs to domestic firms. Subsidiaries of foreign MNEs enjoy advantages that help them compete against domestic...

I integrate the literatures on global strategy and innovation management to explain how domestic firms and subsidiaries of foreign firms innovate. Building on the knowledge-based view, I argue that subsidiaries of foreign firms and domestic firms have access to different knowledge sources and...