The local responsiveness of R&D collaborations in emerging countries

the case analysis of DENSO Thailand R&D center

Abstract

This paper is aiming to explore the mechanisms between the transfer of R&D resources and capabilities from the host country and the R&D “local responsiveness” of the local subsidiaries during the establishment of a local R&D center in an emerging market context.

We conducted a case study of the R&D activities performed at the local technology center of Denso International Asia Co. Ltd in Thailand. By the detailed recording of the process of transfer, and the formation and strengthening of the local R&D capacity, we especially focus on the analysis of examples of local R&D responsiveness promoted by the transfer. We found that it is essential to transfer the resource and core technical capabilities of the parent firm to overcome various environment barriers and insufficiencies in emerging markets. By doing this, it is possible to solve a series of problems caused by the lack of well-developed R&D infrastructure, and in turn this will result in promoting the responsiveness of products' R&D.