Increasingly, multinational enterprises face simultaneous pressures fo
r global integration and local responsiveness. Both management theoris
ts and managers believe that, to respond to this challenge, the intern
ational company should be managed as a coordinated network. This model
insists on the relevance of an international innovation network, on g
lobal management of technology, and on the capability to leverage the
''best'' elements of each location to global benefit. This implies tha
t companies disperse their R&D facilities in different countries to a
much larger extent than in the past. An R&D structure should be design
ed to fulfill three main tasks: constituent technology development, pr
oduct development and technical support to other functions. The driver
s of internationalization, the locational determinants, and the manage
ment processes are unique to each task.