Inderscience Publishers

Strategic location of R&D and emerging patterns of globalisation: the case of Astra Research Centre India

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Transnational corporations (TNCs) have started performing some of their strategic R&D in some developing and East European countries. The main objectives of this paper are to analyse the driving forces behind such a move by TNCs, examine the type of R&D functions being carried out, and to draw possible strategic implications for the R&D management. Our study is carried out through a review of literature, case studies and discussions with the companies. The results of our study indicate that the primary driving forces behind the emerging phenomenon are the companies' efforts to gain access to scientific personnel as well as to reduce R&D costs. The companies involved are observed to be mostly those dealing with science-based technologies. In the emerging phenomenon, which may affect the competitiveness of the companies, ability to spot the talent worldwide and quickly grasp the opportunities to utilise such talents is necessary. Ability to coordinate and integrate R&D and manufacturing activities across different cultural settings, and deal with unique problems such as inadequate patent laws and communication facilities, becomes imperative.

Keywords: developing countries, East European countries, globalisation of R&, D, location of R&, D, low-cost countries, scientification, transnational corporations (TNCs)

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