The internationalisation of R & D by multinationals: a trade-off between external and internal proximity

Overseas production is frequently seen as a force inducing the decentralisa tion of R&D. A complementary explanation can be provided if we admit that t he acquisition of knowledge is one of the key factors behind the internatio nalisation of R&D. Multinational firms which adopt such a technology-orient ed posture must create an external organisation that is designed to scan an d absorb external scientific and technological capabilities, a process whic h we refer to as a quest for 'external proximity'. However, the multination al firm's external organisation should not be constituted to the detriment of its organisational coherence; it should, on the contrary, be completed b y the implementation of relations of proximity internal to the firm, which we refer to as 'internal proximity'. From this perspective, the multination al firm that manages dispersed R&D units is seen as facing a tension-an org anisational trade-off-between external proximity and internal proximity.