Evolution Process of an Overseas R&D Base's Role : The Case Analysis of an American Multinational K-Company's R&D Center in Japan

This paper aims to analyze the process in which an overseas R&D base dynamically evolves its role inside a multinational corporation from both aspects of "technological inter-dependent relation" and "subsidiary's strategic initiatives." I have defined "technological inter-dependent relation" as technological knowledge sharing and learning through the activities of co-development of technology and products with another corporation. Technological inter-dependent relation promotes build-up of its own resources and capabilities by means of sharing tacit knowledge of the two corporations involved. "Overseas subsidiary's initiatives" are referred to an intentional and enterprising attempt which a subsidiary makes good use of its own resources and capabilities for guiding itself toward a new direction, and it spurs its autonomous activities. Following these aspects, this paper apprehends that evolution of an overseas R&D base's role is subject to competence building through technological inter-dependence relation with a local corporation, as well as to entrepreneurial process of revising its role on its initiative. Therefore, I have taken up and made research of a R&D Center in Japan of K-company, an American multinational corporation, and analyzed the 20-year period, from the role of technological transfer in the initial period right after the establishment of the Center, to that of product development of digital camera for global market. This case analysis of the K-company suggests that the keys for evolution process of an overseas R&D base's role are in nature dynamic chain reactions of building of its own competence based upon technological inter-dependent relation with a local supplier and subsidiary's initiatives. The paper also shows that as a result of the role evolved, an overseas R&D base has been able to promote technological inter-dependence rela tion with its internal network, and to see potentials of innovations.