Patterns of Innovation Practices of Multinational-affiliates in Emerging Economies: Evidences from Brazil and India

Summary Little is known about how MNE-affiliates are using their linkage capabilities to source or combine technological inputs in emerging economies. This paper attempts to address this critical gap in the literature by comparing and contrasting innovation practices (IPs) employed by MNE-affiliates in two large emerging economies, India and Brazil. Using a sample of over 1200 MNE-affiliates, factor analysis and segmentation techniques identified different combinations of technology inputs for innovation and the factors that influence the knowledge linkages between MNE-affiliates and national innovation systems. Our findings demonstrate the critical role played by host nations' industrial policy in shaping IPs of MNE-affiliates.