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MNCs, Technological Innovation and Regional Systems in the EU: Some Evidence in the Italian Case

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Author Info
JOHN CANTWELL SIMONA IAMMARINO

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Abstract

The increasing appreciation of the role of multinational corporations (MNCs) in the generation of technology across national boundaries has been facilitated by the recent trend for MNCs to establish internal and external networks for innovation. The development of cross-border corporate integration and intra-border inter-company sectoral integration makes it increasingly important to examine where and how innovative activity by MNCs is internationally dispersed and regionally concentrated. By using patents granted to the largest industrial firms for innovation located abroad-arranged by the host region-we test the nature of the relationship between the foreign-owned and the indigenous company profiles of technological specialisation in the Italian regions. We argue the MNC networks for innovation in Europe conform to a geographical hierarchy of regional centres. Accordingly, the technological specialisation of foreign-owned affiliates in different regional locations depends upon the position of the region in the hierarchy, i.e. whether the regional system is at the top of the hierarchy (higher order location) or is a lower order regional centre.

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Article provided by Taylor and Francis Journals in its journal International Journal of the Economics of Business.

Volume (Year): 5 (1998)
Issue (Month): 3 (November)
Pages: 383-408
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Handle: RePEc:taf:ijecbs:v:5:y:1998:i:3:p:383-408

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Keywords: Multinational Corporations Technological Innovation Regional Systems;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jan Fagerberg, Bart Verspagen, Marjolein Caniëls, 1997. "Technology, Growth and Unemployment across European Regions," Regional Studies, Taylor and Francis Journals, vol. 31(5), pages 457-466, July. [Downloadable!] (restricted)
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  3. Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December. [Downloadable!] (restricted)
    Other versions:
  4. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Miller, Roger, 1994. "Global R & D networks and large-scale innovations: The case of the automobile industry," Research Policy, Elsevier, vol. 23(1), pages 27-46, January. [Downloadable!] (restricted)
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  7. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April. [Downloadable!] (restricted)
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  11. Soete, Luc, 1987. "The impact of technological innovation on international trade patterns: The evidence reconsidered," Research Policy, Elsevier, vol. 16(2-4), pages 101-130, August. [Downloadable!] (restricted)
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  14. Stefano Breschi, 2000. "The Geography of Innovation: A Cross-sector Analysis," Regional Studies, Taylor and Francis Journals, vol. 34(3), pages 213-229, May. [Downloadable!] (restricted)
  15. John Cantwell, 1987. "The Reorganization of European Industries After Integration: Selected Evidence on the Role of Multinational Enterprise Activities," Journal of Common Market Studies, Blackwell Publishing, vol. 26(2), pages 127-151, December. [Downloadable!] (restricted)
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  18. John H. Dunning & Peter Robson, 1987. "Multinational Corporate Integration and Regional Economic Integration," Journal of Common Market Studies, Blackwell Publishing, vol. 26(2), pages 103-125, December. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jutta Günther & Björn Jindra & Johannes Stephan, 2008. "Foreign Subsidiaries in the East German Innovation System – Evidence from Manufacturing Industries," IWH Discussion Papers 4-08, Halle Institute for Economic Research. [Downloadable!]
    Other versions:
  2. Martin Srholec, 2007. "High-Tech Exports from Developing Countries: A Symptom of Technology Spurts or Statistical Illusion?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(2), pages 227-255, July. [Downloadable!] (restricted)
    Other versions:
  3. Paz Estrella Tolentino, 2000. "The Conduct of Industrial Policy in an Integrated Europe," International Review of Applied Economics, Taylor and Francis Journals, vol. 14(3), pages 391-401, July. [Downloadable!] (restricted)
  4. John Cantwell, Simona Iammarino, 2000. "Multinational Corporations and the Location of Technological Innovation in the UK Regions," Regional Studies, Taylor and Francis Journals, vol. 34(4), pages 317-332, June. [Downloadable!] (restricted)
  5. Ho, M., 2004. "Differences between European Regional Innovation Systems in Terms of Technological and Economic Characteristics," ECIS Working Papers 04.06, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology. [Downloadable!]
  6. Cincera, Michele & van Pottelsberghe, Bruno & Veugelers, Reinhilde, 2005. "Assessing the Foreign Control of Production of Technology: The Case of a Small Open Economy," CEPR Discussion Papers 4945, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Cesare Imbriani & Filippo Reganati, 1999. "Productivity spillovers and regional differences: some evidence on the italian manufacturing sector," CELPE Discussion Papers 48, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
  8. John Cantwell & Simona Iammarino, 2001. "The technological relationships between indigenous firms and foreign-owned MNCs in the European regions," ERSA conference papers ersa01p269, European Regional Science Association. [Downloadable!]
  9. Sarianna Lundan, John Hagedoorn, 2001. "Alliances, Acquisitions and Multinational Advantage," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(2), pages 229-242, July. [Downloadable!] (restricted)
  10. Paolo Guerrieri, 2001. "Industrial Districts, ICT and Global Production Networks: The Italian Experience," Economics Study Area Working Papers 16, East-West Center, Economics Study Area. [Downloadable!]
  11. A. Rodriguez-Pose & Riccardo Crescenzi, 2006. "R&D, spillovers, innovatoin systems and the genesis of regional growth in Europe," Departmental Working Papers of Economics - University 'Roma Tre' 0067, Department of Economics - University Roma Tre. [Downloadable!]
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  12. Cantwell, John A. & Piscitello, Lucia, 2000. "The Location Of Mnc'S Technological Activities In Europe: Agglomerative Tendencies And Other Territorial Externalities," ERSA conference papers ersa00p343, European Regional Science Association. [Downloadable!]
  13. Giulio Bottazzi & Giorgio Fagiolo & Giovanni Dosi, 2003. "Mapping Sectoral Patterns of Technological Accumulation into the Geography of Corporate Locations. A Simple Model and Some Promising Evidence," Computing in Economics and Finance 2003 268, Society for Computational Economics. [Downloadable!]
    Other versions:
  14. Manuel Portugal Ferreira & Fernando A. Ribeiro Serra, 2008. "Open and closed industry clusters: The social structure of innovation," Working Papers 24, globADVANTAGE, Polytechnic Institute of Leiria. [Downloadable!]
  15. Grazia D. Santangelo, 2002. "The Regional Geography of Corporate Patenting in Information and Communications Technology (ICT): Domestic and Foreign Dimensions," Regional Studies, Taylor and Francis Journals, vol. 36(5), pages 495-514, July. [Downloadable!] (restricted)
  16. Qin Yang & Crystal Jiang, 2007. "Location advantages and subsidiaries’ R&D activities in emerging economies: Exploring the effect of employee mobility," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 341-358, September. [Downloadable!] (restricted)
  17. Giulio Bottazzi & Giovanni Dosi & Giorgio Fagiolo, 2001. "On the Ubiquitous Nature of the Agglomeration Economies and their Diverse Determinants: Some Notes," LEM Papers Series 2001/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
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