International corporate entrepreneurship (ICE) can be looked upon from the subsidiary initiative as well as MNC headquarters’ innovation, proactiveness and risk taking perspectives. We take the latter view and investigate the entrepreneurial action of MNCs setting up subsidiaries as an act of ICE. Such ventures are often formed in regional contexts, hence clustered in geographical space due to localized social networks, support institutions like universities, VC firms, advice networks, human capital, and the mobility thereof. A prominent factor is the role of knowledge flows and spillovers which is seen as one of the most intangible and tacit ones and has inspired streams of research in knowledge- and technology-intensive sectors. We build on this understanding through an explorative study of knowledge types and flows in the role of subsidiary entrepreneurship in the Indian software sector. We draw from entrepreneurship and international business literatures to determine the impact on different types of knowledge flows – internal and external. We aim to address the research questions 1) how knowledge flows impact R&D subsidiaries and 2) if and how this is evolving over time.