For more than a decade, multinational enterprises from developed countries have been moving a substantial part of their research and development (R&D) activity to emerging markets such as India and China. While the location of R&D centers in other developed countries has been driven by lucrative markets or specific expertise available in the local ecosystems of those countries, the location of R&D in developing countries has been driven largely by the availability of skilled manpower at low cost. At first, these R&D centers in emerging markets operated largely as extended arms of R&D in the home country, executing well-defined projects under close supervision from headquarters.