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Determinants of MNE subsidiaries decision to set uo own R&D laboratories: Theory and Evidence

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  • Constantina Kottaridi
  • Marina Papanastassiou
  • Christos Pitelis

Abstract

We explore the determinants of MNE subsidiaries decisions to set-up own R&D laboratories drawing on evidence from UK regions. In this context, we also test for the interaction between firm’s internal and external environments. We also integrate extant IB and strategic management literatures and incorporate recent debates in New Economic Geography (NEG) in specifying the ‘external environment’. We find support for the role of firm’s ‘productive opportunity’ and predictions of the NEG on the basis of an analysis of primary data. We discuss implications for managerial practice and government regional policies.

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File URL: http://econ.uop.gr/~econ/RePEc/pdf/Kot_Pap_Pit.pdf
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Bibliographic Info

Paper provided by University of Peloponnese, Department of Economics in its series Working Papers with number 007.

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Length: 34 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:uop:wpaper:007

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Keywords: MNE subsidiaries; R&D laboratory; internal and external environment; productive opportunity;

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  1. Davis, Lee N. & Meyer, Klaus E., 2004. "Subsidiary research and development, and the local environment," International Business Review, Elsevier, vol. 13(3), pages 359-382, June.
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  12. Taggart, James & Hood, Neil, 1999. "Determinants of autonomy in multinational corporation subsidiaries," European Management Journal, Elsevier, vol. 17(2), pages 226-236, April.
  13. Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 1-24, March.
  14. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-85, March.
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  16. A. J. Dixon & H. R. Seddi, 1996. "An Analysis of R & D Activities in North East England Manufacturing Firms: The Results of a Sample Survey," Regional Studies, Taylor & Francis Journals, vol. 30(3), pages 287-294.
  17. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan, vol. 35(3), pages 255-255, May.
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