Subsidiary development in German and Japanese manufacturing subsidiaries in the British Isles

Within the context of the role which inward investment plays in economic growth, this paper compares subsidiary development patterns in German and Japanese manufacturing subsidiaries in the British Isles. It is based on a sample of 177 companies which were surveyed in 1994/95, 35 of which were followed up by interviews over the same period. Based on the literature on subsidiary development, and especially on the role of strategic choice open to local management, a series of hypotheses are tested on subsidiary roles and decision-making status. Finally, and based on the comparative evidence, economic development policy issues are examined from three different perspectives, namely development agencies, multinational companies and subsidiary managers.