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This paper aims to propose practical recommendations in accordance with the strategic roles played by research and development (R&D) in multinational companies (MNCs).

This study applies a qualitative method to investigate the talent management (TM) practices implemented in MNCs’ R&D units.

The findings identify four R&D strategies and four sectors of TM practices. Furthermore, there exists an alignment between R&D strategies and TM practices.

This paper has several limitations. This qualitative research is exploratory, and larger samples or quantitative methods are needed to ensure the wider applicability of the findings. When possible, longitudinal studies yield superior results in revealing the evolving strategic roles of R&D subsidiaries and their TM practices. The authors used China as the research context, and similar studies in other emerging countries with active R&D activities are required to further validate or complement the findings in this study.

This study has some practical implications for companies with regard to aligning their TM practices with R&D strategies.

R&D units play an increasingly significant role in MNCs and TM is a key issue. However, there is a lack of TM research focusing on R&D employees by taking strategies into account.

It has been argued in the international business literature that companies begin their internationalization trajectories by entering countries that are geographically and psychically closest to the country in which their home market is located before entering more distant ones. This paper aims to verify whether this assertion is correct for Brazilian companies. If it is correct, the companies would be expected to begin their international expansion in countries within the Latin America region. Not only is this region closest in geographical distance, but also it is most similar to Brazil in many other important dimensions.

This paper is an exploratory and quantitative research undertaken with a sample of 109 national capital companies selected from the 1,000 largest Brazilian companies in 2001 net revenues.

Empirical findings indicate that countries in Latin America have been most frequently chosen by Brazilian companies for their first expansions into international markets. Nevertheless, some companies choose divergent trajectories, initially entering markets that are geographically and psychically more distant. Those companies enjoyed structural features of certain sectors (commodities or global sectors), in which the importance of psychic distance is smaller in the face of economic transactions.

An important limitation of this paper is the impossibility to test the hypotheses in specific countries or markets. The authors are forced to analyze the psychic distance effect among regions, with the risk of not accounting for important intra‐regional differences.

The data presented in this paper have clarified some patterns and trajectories of Brazilian companies in international markets.