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Published by:
WHU - Otto Beisheim School of Management (2009)
Length:
22 pages
Data source:
Field research

Abstract

In 2000, General Electric (GE) opened the John F Welch Technology Centre (JFWTC), its first research and development (R&D) site outside the USA, in Bangalore, India. In the last eight years it has grown from just under 300 employees to 3,800 researchers and engineers, making it GE''s largest multidisciplinary R&D centre abroad. This extraordinary facility can be described as a ''mini GE'' because it mirrors the business structure of GE itself. It is a true innovation hub for developing new products for worldwide markets. What''s more, the site has a competitive advantage in the light of increasingly important so-called emerging markets. The case describes the story behind the establishment of the JFWTC. Furthermore, it shows in detail a number of factors critical for the successful set up and day-to-day management of such an R&D site. These are, among other things, top management support, human resource management as well as a good local and international network. Thus, the case brings up several very up to date issues concerning global R&D management and new product development in an international setting. How should a company establish R&D operations in an emerging market? How should it integrate such a new site into its existing international R&D network? What are the main reasons behind choosing India as an R&D location?

Topics

Corporate strategy; Emerging markets; General Electric; Global research and development (R&D) network; India; Innovation; International business; New product development; Research and development; Technology
Location:
Size:
Over 320,000 employees and USD173 billion revenue
Other setting(s):
2000-2008

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Awards, prizes & competitions

2010 - AESE case writing competition - second prize winner

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