How R&D is coordinated in Japanese and European multinationals

What are the suitable forms and mechanisms for the coordination of international R&D and innovation processes in multinational corporations? This paper sets out to answer this question by exploratory research and interviews in 18 European and Japanese companies. As a conceptual background, four different categories of coordination mechanisms are generated (‘structural’, ‘hybrid’, ‘informal’ and ‘internal markets’). The empirical results show that Japanese companies make intensive use of personal contacts, informal communication and socialisation whereas European enterprises rely more on internal markets in R&D.