We studied "regional innovation relays" as MNC regional offices that mediate between knowledge generation at the local level and knowledge application at the global level. The significance of the region as a nexus of innovation is illustrated by concrete examples from U.S. and Japanese MNCs. The role of regional management for the MNC's innovation system hinges precisely on the need for linkages between knowledge embedded in locally conducted activities and innovation exploited at the global level by the MNC. A framewotk of regionally facilitated innovation illuminates this process.
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