ABSTRACT
This chapter examines how multinational enterprise (MNE) subsidiaries and potential inter-organizational linkages within the global value chains (GVC) can enhance the national innovation system (NIS) framework by focusing on the case of Japanese subsidiaries located in the Philippines and their linkages with local Filipino firms. Using interview data collected in the Philippines focusing on organizational linkages between Japanese MNE subsidiaries and local firms, the chapter explores the inter-organizational linkages between MNE subsidiaries and local suppliers. It then introduces MNEs' global approach to research and development (R&D) as one of the vertical integrating activities in a host country, followed by discussion of the data from the Philippines and the importance of MNE-subsidiary roles for inter-organizational linkages in a host country. For MNEs, the positive influences of inter-organizational linkages in a host country are that geo-graphically diversified innovation and knowledge-creation activities can be enabled and MNEs can source potential knowledge dispersed in different host countries.
