This paper examines the characteristics of foreign-owned subsidiaries in ex
port-intensive "leading-edge industry clusters" as defined by Porter [1990]
. Using a sample of 229 subsidiaries from three countries, we show that sub
sidiaries in such clusters are more embedded, more autonomous, and more int
ernationally-oriented than subsidiaries in other industry sectors. We also
show that there are significant differences in the roles of foreign-owned s
ubsidiaries from one leading-edge cluster to the next, that are associated
with the dynamism of the cluster and the overall level of foreign ownership
. The results indicate (1) that typologies of subsidiary roles should give
increased consideration to environmental factors, and (2) that thinking on
industry clusters, instead of treating them identically, should recognize t
hat they have heterogeneous characteristics.