Subsidiary development in German and Japanese manufacturing subsidiaries in the British Isles

Within the context of the role which inward investment plays in economic gr owth, this paper compares subsidiary development patterns in German and Jap anese manufacturing subsidiaries in the British Isles. It is based on a sam ple of 177 companies which were surveyed in 1994/95, 35 of which were follo wed up by interviews over the same period. Based on the literature on subsi diary development, and especially on the role of strategic choice open to l ocal management, a series of hypotheses are tested on subsidiary roles and decision-making status. Finally, and based on the comparative evidence, eco nomic development policy issues are examined from three different perspecti ves, namely development agencies, multinational companies and subsidiary ma nagers.