The study analyzes the innovation process in MNCs as creation and integration of value between subsidiaries and headquarters. It proposes a framework of geocentric innovation model to explain the innovation process in MNCs by emphasizing the significance of subsidiaries. In VUCA world, MNCs use subsidiaries as value generating units to create disruption in host country markets which is later transferred and adapted in other markets worldwide through the process of re-development. Open innovation and dynamic capabilities are the main mechanisms to execute the underlying strategy. The study discusses the case of Harman International Industries to trace the roots of the international innovation strategy of the firm in three pillars of geocentric innovation model. It is concluded that the role of subsidiaries as value generating unit is elevated in the VUCA environment due to the potential of emerging markets to serve as laboratories and the emergence of geographically dispersed technology clusters distanced from MNCs headquarters. So, MNCs are focusing more on dynamic capabilities, disruptive innovation from scratch, and open innovation to generate and integrate knowledge based assets worldwide.