The research literature is rich on innovations in R&D-specific organizations and provides useful information on support systems and other organizational features associated with such specialized organizations. An implied assumption of many studies is that R&D exists as an independent entity, without controls or influences from the other functions of an organization. While this may be true for purely R&D organizations, the picture is different when R&D is organized as part of a larger system in which the core activities centre on operating departments. This is the pattern in developing countries like India, where most R&D activities are carried out in departments/divisions of companies that were established primarily for operational purposes. In this study, 31 cases of innovation (15 from R&D centres and 16 from operating departments of large corporations in India) are analysed using a qualitative method of content analysis of data collected through in-depth interviews. While this comparative analysis highlights the need for specific organizational support systems to cater for the specific requirements of the two groups, the most prominent findings on intrapreneurship are that it is facilitated primarily by the flexibility of the R&D scientists to work in their core as well as related areas and the continuous and issue-based interaction between the R&D centres and operating departments. (Contains 3 tables.)