The Drivers of Transnational Subsidiary Evolution: The Upgrading of Process R&D in the Irish Pharmaceutical Industry

Chris van Egeraat and Proinnsias Breathnach

Regional Studies, 2012, vol. 46, issue 9, 1153-1167

Abstract: Van Egeraat C. and Breathnach P. The drivers of transnational subsidiary evolution: the upgrading of process R&D in the Irish pharmaceutical industry, Regional Studies . This paper contributes to the theory of subsidiary evolution in large corporations through an examination of the driving forces behind upgrading of process research and development (R&D) activities in the Irish pharmaceutical industry. Drawing on a survey of pharmaceutical plants and interviews with transnational pharmaceutical plants, it is shown that vigorous growth is occurring in the incidence of process R&D. The paper supports the utility of a multilevel systems perspective on subsidiary evolution. The external environment, internal environment and subsidiary drivers are seen to drive upgrading in a systemic way. The primary drivers for the subsidiaries' enhanced role are located in the global external environment.

Date: 2012
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DOI: 10.1080/00343404.2012.657620

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