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Purpose – In this chapter, we seek to extend understanding of the ‘international’ dimension of comparative international entrepreneurship (IE), by undertaking exploratory empirical research within a global industry viz. the software industry, and focusing on two local ecologies, namely a regional agglomeration (Bangalore, India) and less developed niche (Lahore, Pakistan) about which little is known.

Methodology – On the basis of in-depth interviews in Bangalore and Lahore, exemplar case studies from both sub-national regions are presented, which highlight the relative significance of local milieu and ethnic ties in IE.

Findings – The global nature of the software industry and the central role of the innovative milieu in the USA have important implications for the comparative IE literature. These refer particularly to the coordination and integration of the entrepreneurial processes of opportunity discovery, evaluation and exploitation across frontiers. Close inter-milieu links provide the opportunity to access complementary assets and business networks. While Indians have influenced the development of Silicon Valley, their ties with Bangalore seem primarily to be based on hard-nosed business relations. But in relation to Pakistan, while the US milieu is critical for all aspects of the entrepreneurial process, closed networks may be a barrier to long-term growth.

Originality/value of chapter – Where our study goes beyond the literature is by highlighting the role of cross-border linkages between milieux.

This volume of Progress in International Business Research comprises of a selection of 12 competitive papers from the 34th EIBA (European International Business Academy) annual conference, which was held in Tallinn, Estonia in December 2008 with the theme “International Business and the Catching-up Economies: Challenges and Opportunities”. It addresses two main issues – (1) the internationalization process and (2) the role of knowledge and innovation for internationalization – that are important in the current economic slowdown both for catching-up and for other economies, scholars, and practitioners.

This volume is the outcome of the 33rd European International Business Academy (EIBA) conference held at the Faculty of Political Science of the University of Catania (Italy). This conference brought together more than 300 scholars from around the world to discuss theoretical and empirical issues in international business (IB), as well as their consequences and challenges to IB scholars and policy-makers. Organized around 10 thematic tracks, the conference is the annual forum for discussing major research issues in the IB realm. This volume is a collection of the best papers, which, selected through a blind refereeing process for presentation at the conference, make significant contributions by providing fresh new perspectives on a variety of relevant topics.

In this paper, I review and evaluate the concept of subsidiary initiative, and I discuss how theorizing about the multinational corporation (MNC) in general has been informed by studies focusing on subsidiary initiative and related subsidiary-level issues. In the second part of the paper, I discuss some of the trends underway in the world of business that are influencing the nature and amount of subsidiary initiative observed in MNCs. Most of these seem likely to make subsidiary initiative more common, though some of them will favor externally focused initiatives while others will favor internally focused ones.