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Towards a technology-seeking explanation of U.S. direct investment in the United Kingdom

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  • Cantwell, John A.
  • Dunning, John H.
  • Janne, Odile E. M.

Abstract

This article examines the evolution of the industrial structure of local technological development by U.S.-owned multinational enterprises (MNEs) in the United Kingdom in the 1950s and over the more recent period 1969-1995. Using a survey of U.S. subsidiaries in the United Kingdom and more recent data on patents granted in the United States to the largest MNEs, the article illustrates the effect of a shift toward internationally integrated strategies for corporate technological development. The local innovation of MNEs has moved closer to the industries of host country technological advantage, and hence to utilising location-specific capabilities as a source of competitive advantage in the MNE. We interpret this as a shift from an asset-exploiting toward an asset-augmenting form of foreign direct investment (FDI).

Suggested Citation

  • Cantwell, John A. & Dunning, John H. & Janne, Odile E. M., 2004. "Towards a technology-seeking explanation of U.S. direct investment in the United Kingdom," Journal of International Management, Elsevier, vol. 10(1), pages 5-20.
    • Handle: RePEc:eee:intman:v:10:y:2004:i:1:p:5-20
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    References listed on IDEAS

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    2. Wang, Yue & Suh, Chung-Sok, 2009. "Towards a re-conceptualization of firm internationalization: Heterogeneous process, subsidiary roles and knowledge flow," Journal of International Management, Elsevier, vol. 15(4), pages 447-459, December.
    3. Moghaddam, Kaveh & Sethi, Deepak & Weber, Thomas & Wu, Jun, 2014. "The Smirk of Emerging Market Firms: A Modification of the Dunning's Typology of Internationalization Motivations," Journal of International Management, Elsevier, vol. 20(3), pages 359-374.
    4. Tsang, Eric W.K. & Yip, Paul S.L. & Toh, Mun Heng, 2008. "The impact of R&D on value added for domestic and foreign firms in a newly industrialized economy," International Business Review, Elsevier, vol. 17(4), pages 423-441, August.
    5. Rene Belderbos & Vincent Van Roy & Bart Leten & Bart Thijs, 2014. "Academic Research Strengths and Multinational Firms' Foreign R&D Location Decisions: Evidence from R&D Investments in European Regions," Environment and Planning A, , vol. 46(4), pages 920-942, April.
    6. Qamar, A. & Gardner, E.C. & Buckley, T. & Zhao, K., 2021. "Home-owned versus foreign-owned firms in the UK automotive industry: Exploring the microfoundations of ambidextrous production and supply chain positioning," International Business Review, Elsevier, vol. 30(1).

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