Introduction and Overview

One of the most stimulating and productive areas of research in international business over the years has been that concerning the multinational (MNE) subsidiary. In the recent past much of this research effort has been directed at the theme of managing the MNE subsidiary, exploring the entrepreneurial potential of and ways of unleashing innovation in foreign subsidiaries. However, the economic development dimension of foreign direct investment (FDI) and MNE subsidiaries’ operations has also been a significant research area for academics, especially those in regional economics and economic geography (recognising that more research is required – see Paterson and Brock, 2002). Host country governments have drawn on this research to devise policies to attract, sustain and develop inward investment activities.