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Recent Location of Foreign-owned Research and Development Activities by Large Multinational Corporations in the European Regions: The Role of Spillovers and Externalities

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Author Info
John Cantwell
Lucia Piscitello

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Abstract

Cantwell J. and Piscitello L. (2005) Recent location of foreign-owned research and development activities by large multinational corporations in the European regions: the role of spillovers and externalities, Regional Studies 39 , 1-16. This paper examines the role of spillovers and externalities in influencing the recent siting of foreign-owned research and development activities in European regions. In accordance with the literature on knowledge creation in multinational corporations, the location of foreign-owned research tends to agglomerate depending upon the potential for the following different sources of spillovers and externalities: (1) intra- industry spillovers or specialization externalities associated with the presence of a wide-ranging collection of firms active in the same sector; (2) inter-industry spillovers or diversity externalities associated with the co-presence of firms working in different fields; and (3) science-technology spillovers and externalities stemming from the presence of a munificent scientific and educational infrastructure. Additionally, benefits from spillovers decline with distance, but this holds especially for intra- and inter-industry spillovers. Cantwell J. et Piscitello L. (2005) L'implantation récente dans les régions d'Europe des centres de recherche à capital majoritaire étranger par les sociétés multinationales: le rôle des retombées et des effets externes, Regional Studies 39 , 1-16. Cet article cherche à examiner le rôle des retombées et des effets externes quant à l'implantation récente dans les régions d'Europe des centres de recherche à capital majoritaire étranger. Conformément à la documentation sur la création de la connaissance dans les sociétés multinationales, les emplacements des centres de recherche à capital majoritaire étranger ont tendance à s'agglomérer en fonction des différentes sources de retombées et d'effets externes: à savoir, (1) des retombées intraindustrielles ou des effets externes dus à la spécialisation, qui s'associent à la présence d'un large parc d'entreprises du même secteur; (2) des retombées interindustrielles ou des effets externes dus à la diversité, qui s'associent à la présence des entreprises de divers secteurs; et (3) des retombées scientifiques et technologiques, et des effets externes qui remontent à la présence d'une infrastructure scientifique et scolaire avantageuse. En plus, il s'avère que les retombées diminuent en fonction de la distance, surtout pour les retombées intra et interindustrielles. Cantwell J. und Piscitello L. (2005) Für in ausländischem Besitz befindliche Forschungs-und Entwicklungsunternehmen neuerlich in europäischen Regionen von großen multinationalen Firmen gewählte Standorte: die Rolle von Verbreitung und externen Effekten, Regional Studies 39 , 1-16. Dieser Aufsatz untersucht die Rolle von Verbreitung und externen Effekten bei der Beeinflussung kürzlich erfolgter Standortwahlen für in ausländischem Besitz befindliche Forschungs-und Entwicklungunternehmen in europäischen Regionen. In übereinstimmung mit der Literatur zur Wissensgenerierung in multinationalen Korporationen stellen die Autoren fest, daß die Standortwahl von in ausländischem Besitz befindlichen Forschungszentren zur Ballung neigt, je nach Potential für die folgenden verschiedenen Quellen für Verbreitung und externe Effekte: (1) innerbetriebliche Verbreitung oder spezializierungsexterne Effekte in Verbindung mit dem Vorhandensein einer breitgefächerten Palette von im gleichen Sektor tätigen Firmen; (2) innerbetriebliche Verbreitung oder Vielfalt externer Effekte in Verbindung mit gleichzeitiger Anwesenheit von Firmen, die auf anderen Gebieten tätig sind; und (3) wissenschaftlich-technologische Verbreitung und externe Effekte, die sich aus dem Vorhandensein einer großzügigen Wissenschafts-und Bildungsstruktur ergeben. Darüberhinaus wird festgestellt, daß sich aus Verbreitung ergebende Vorteile mit zunehmender Entfernung abnehmen, doch dies bezieht sich vorallem auf inner-und zwischenbetriebliche Verbreitung. Cantwell J. y Piscitello L. (2005) La reciente localización de actividades de investigación y desarrollo extranjeras por parte de corporaciones multinacionales en las regiones europeas: el rol de los efectos de arrastre ( spillovers ) y de las externalidades, Regional Studies 39 , 1-16. Este artículo examina de qué forma los efectos de arrastre ( spillovers ) y las externalidades han afectado la reciente localización de actividades de investigación y desarrollo extranjeras en regiones europeas. De acuerdo con la literatura sobre creación de conocimiento dentro de las corporaciones multinacionales, descubrimos que las actividades de investigación extranjeras tienden a aglomerarse, dependiendo del potencial que exista para que se den las siguientes fuentes de efectos de arrastre y externalidades: (1) efectos de arrastre intra-industriales o externalidades derivadas de la especialización, los cuales están asociados con la presencia de un conjunto de empresas de carácter diverso que permanecen activas dentro del mismo sector; (2) efectos de arrastre inter-industriales o externalidades derivadas de la diversidad, los cuales están asociados con la presencia conjunta de empresas que trabajan en diferentes campos; y (3) efectos de arrastre científico- tecnológicos y externalidades derivadas de la presencia de una infraestructura educativa y científica munificiente. Asimismo, encontramos que los beneficios que se generan a partir de los efectos de arrastre disminuyen con la distancia, especialmente en el caso de los efectos de arrastre intra- e inter-industriales.

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Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 39 (2005)
Issue (Month): 1 (January)
Pages: 1-16
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Handle: RePEc:taf:regstd:v:39:y:2005:i:1:p:1-16

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Related research
Keywords: Multinational corporations; Research and development activities; Spillovers; Externalities; European regions;

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  1. Hilber, Christian A. L. & Voicu, Ioan, 2007. "Agglomeration Economies and the Location of Foreign Direct Investment: Empirical Evidence from Romania," MPRA Paper 5137, University Library of Munich, Germany. [Downloadable!]
  2. Rammer, Christian & Schmiele, Anja, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," ZEW Discussion Papers 08-035 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Rene Belderbos & Bart Leten & Shinya Suzuki, 2009. "Does Excellence in Academic Research Attract Foreign R&D?," Global COE Hi-Stat Discussion Paper Series gd09-079, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  4. Anja Schmiele, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," Working Papers id:1547, esocialsciences.com. [Downloadable!]
  5. Schmiele, Anja & Rammer, Christian, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," ZEW Discussion Papers 08-035, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. Andrea Fernández-Ribas & Philip Shapira, 2009. "Technological diversity, scientific excellence and the location of inventive activities abroad: the case of nanotechnology," The Journal of Technology Transfer, Springer, vol. 34(3), pages 286-303, June. [Downloadable!] (restricted)
  7. Heinz Hollenstein, 2008. "Characteristics of Foreign R&D Strategies of Swiss Firms. Implications for Policy," WIFO Working Papers 315, WIFO. [Downloadable!]
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  8. Spyros Arvanitis & Heinz Hollenstein, 2006. "Determinants of Swiss Firms’ R&D Activities at Foreign Locations: An Empirical Analysis Based on Firm-level Data," KOF Working papers 06-127, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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