The impact of foreign forms' knowledge creation in host countries: The case of India

To what extent MNCs achieve the outcomes desired by host country stakeholders is yet to receive the attention it deserves in the mainstream international business literature. There is much ambiguity regarding how to deal with cooperative global innovations as they evolve from being subpatentable learning experiments to commercially viable patents with potentially large social impact. Our research shows that the contribution of MNCs in the form of exports and royalties is significantly lower than the contribution made by local firms. Insufficient attention to local subsidiary interests may undermine the motivation of subsidiary managers to discover new sources of advantage for the MNC. It may also discourage subsidiary country governments from offering incentives to MNCs for inward FDI.