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Attraction and deterrence in the location of foreign-owned R&D activities: the role of positive and negative spillovers

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  • John Cantwell
  • Lucia Piscitello

Abstract

This paper examines how the characteristics of local contexts affect the location of foreign-owned R&D activities, in terms of positive (i.e. attraction) and/or negative (i.e. deterrence) spillovers. It distinguishes between activities that are Competence-Creating (CC) (that create new lines of technology for the MNC group) and Competence-Exploiting (CE) (adapt established lines of technology). The empirical investigation uses patents granted in the USA to the world's largest industrial firms for inventions achieved in their European-located operations, classified by the host region in which the research facility responsible is located, over the period 1969–1995. The results show that positive spillovers stem from a high degree of local interindustry diversity, as well as from the presence of a local variety of other actors in the same industry, at least when they are foreign-owned. In contrast, the presence of domestically-owned dominant firms in the same industry tends to act as a deterrent.

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Bibliographic Info

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Technological Learning, Innovation and Development.

Volume (Year): 1 (2007)
Issue (Month): 1 ()
Pages: 83-111

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Handle: RePEc:ids:ijtlid:v:1:y:2007:i:1:p:83-111

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Web page: http://www.inderscience.com/browse/index.php?journalID=240

Related research

Keywords: multinational corporations; MNCs; R&D activities; spillovers; European regions; research and development; attraction; deterrence; research facilities; facility location; foreign ownership; technological learning; innovation.;

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Cited by:
  1. Chaminade, Cristina & Plechero, Monica, 2012. "Do regions make a difference? Exploring the role of different regional innovation systems in global innovation networks in the ICT industry," CIRCLE Electronic Working Papers 2012/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  2. Alvandi , Keyvan & Chaminade , Cristina & Lv, Ping, 2013. "Commonalities and differences between production-related FDI (PFDI) and technology-related FDI (TFDI) in developed and emerging economies," CIRCLE Electronic Working Papers 2013/47, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  3. Ju Liu & Cristina Chaminade & Bjorn Asheim, 2013. "The Geography and Structure of Global Innovation Networks: A Knowledge Base Perspective," European Planning Studies, Taylor & Francis Journals, vol. 21(9), pages 1456-1473, September.
  4. Isabel Álvarez & John Cantwell, 2011. "International Integration and Mandates of Innovative Subsidiaries in Spain," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(3), pages 415-444, October.
  5. Manolopoulos, Dimitris & Söderquist, Klas Eric & Pearce, Robert, 2011. "Coordinating decentralized research and development laboratories: A survey analysis," Journal of International Management, Elsevier, vol. 17(2), pages 114-129, June.

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