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The location of technological activities of MNCs in European regions: The role of spillovers and local competencies

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  • Cantwell, John
  • Piscitello, Lucia

Abstract

This paper examines the relative attractiveness of the Italian, German and UK regions for the siting of foreign-owned corporate technological development, controlling for the geographical distribution of the equivalent innovative efforts of established indigenous firms in each country. The data used are patents granted in the US to the world's largest firms from 1969 to 1995, identifying the ultimate nationality of ownership and the location of the research facility responsible for each patent. Through econometric models based on count data techniques, it is shown that the relative attraction of a location for foreign-owned research depends positively upon the local market size, the local scientific and educational infrastructure and the potential for intra- and interindustry spillovers.

Suggested Citation

  • Cantwell, John & Piscitello, Lucia, 2002. "The location of technological activities of MNCs in European regions: The role of spillovers and local competencies," Journal of International Management, Elsevier, vol. 8(1), pages 69-96.
  • Handle: RePEc:eee:intman:v:8:y:2002:i:1:p:69-96
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