Offshore knowledge incubation: The "third path" for embedding R&D labs in foreign systems of innovation

Mark Lehrer, Kazuhiro Asakawa

Research output: Contribution to journalArticle

30 Citations (Scopus)


Offshore knowledge incubation (OKI) denotes the effort by foreign R&D units of MNCs to achieve local embeddedness within the host-country R&D system, even at the expense of remaining detached from the rest of the MNC. An open-ended social interaction and learning process, OKI can be seen as a novel path of MNC subsidiary evolution. In a qualitative study of eight European "knowledge incubators," the concept was found to be useful for analyzing the adjustment in R&D strategies of Japanese firms venturing into basic research abroad and of U.S. information technology companies coping with the turbulent IT environment of the 1990s.

Original languageEnglish
Pages (from-to)297-306
Number of pages10
JournalJournal of World Business
Issue number4
Publication statusPublished - 2002


ASJC Scopus subject areas

  • Business and International Management
  • Marketing
  • Finance

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