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Productivity Spillovers from Foreign MNEs on Domestic Manufacturing Firms: Is Co-location Always a Plus?

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Author Info

  • Sergio Mariotti

    (DIG - Politecnico di Milano)

  • Marco Mutinelli

    (University of Brescia)

  • Marcella Nicolini

    (Fondazione Eni Enrico Mattei)

  • Lucia Piscitello

    (DIG - Politecnico di Milano)

Abstract

The paper analyses productivity spillovers from foreign MNEs on domestic manufacturing firms. Using a database on foreign MNEs in Italy, our results reveal that local firms do benefit from the presence of foreign MNEs, and the effect is higher when local and foreign firms in manufacturing sectors are co-located. However, spillovers benefiting domestic firms are likely to be less influenced by co-location when foreign MNEs are in services sectors as the latter are different from manufacturing industries under a number of aspects that overcome the effect of distance. Indeed, in these sectors, proximity and interaction are often obtained through professional mobility and temporary inter-organizational routines.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2011.06.

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Date of creation: Jan 2011
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Handle: RePEc:fem:femwpa:2011.06

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Related research

Keywords: Multinational Firms; Co-Location; Proximity; Spillover Effects; Customer-Supplier Interaction; Vertical Linkages;

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