What are the suitable forms and mechanisms for the coordination of internat
ional R&D and innovation processes in multinational corporations? This pape
r sets out to answer this question by exploratory research and interviews i
n 18 European and Japanese companies. As a conceptual background, four diff
erent categories of coordination mechanisms are generated ('structural', 'h
ybrid', 'informat' and 'internal markets'). The empirical results show that
Japanese companies make intensive use of personal contacts, informal commu
nication and socialisation whereas European enterprises rely more on intern
al markets in R&D.