MNE R&D Subsidiary Mandates Evolution in Emerging Economies: A Systematic Literature Review

The aim of this paper is to present the results of a systematic literature review (SLR) on the subject of Research and Development (R&D) subsidiary mandate evolution in emerging economies and to illustrate what triggers R&D mandate upgrade. The subject of R&D mandates is of crucial importance to many multinational enterprises (MNEs) striving to utilize the potential of their foreign operations towards higher-value-added activities. While developed economies have long been a destination for R&D activities, emerging economies are increasingly recognized for their innovation potential. Previous research focused predominantly on developed economies, whereas the current trend of emerging economies has not been systematically reviewed. The paper uses Cooper’s (2017) approach to conducting a SLR based on 80 articles. The review defines four main themes, divers & locational attractiveness, subsidiary R&D mandates, evolutionary perspective on mandate change and antecedences for R&D mandate evolution. It concludes with an integrative conceptual framework utilizing multiple perspectives on R&D mandate evolution. Theoretically, this framework contributes to the advancement on the literature on subsidiary evolution in general and particularly in emerging markets. From a practical perspective, a better-integrated framework can provide guidance to businesses in emerging economies on how to start and successfully upgrade their R&D activities.