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Local development and embedded large firms

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  • Marco Bellandi

Abstract

A classification of potential ties between large firms and local economies is proposed, first, by working on various sections of literature concerning multinational enterprises, subsidiaries and regional development. Then, building on a model of a dynamic local economy, i.e. the vital industrial district, a framework is sketched in which different combinations of linkages are put in relation to different pools and degrees of strength of social capital and other local factors. The main object of this paper is to present that framework and illustrate a proposition nested in it. The proposition is that involvement in knowledge exchange and institutional building, identifying ‘developmental embeddedness’, is more probable where and when the local factors are neither ‘too weak’ nor ‘too strong’, and contextual policies fostering the developmental role of large firm units are present.

Suggested Citation

  • Marco Bellandi, 2001. "Local development and embedded large firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(3), pages 189-210, July.
  • Handle: RePEc:taf:entreg:v:13:y:2001:i:3:p:189-210
    DOI: 10.1080/08985620110051103
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    File URL: http://hdl.handle.net/10.1080/08985620110051103
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    References listed on IDEAS

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    1. Alexis Jacquemin, 1987. "The New Industrial Organization: Market Forces and Strategic Behavior," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262600145, November.
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    Cited by:

    1. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2014. "Internationalization and industrial districts: evidence from the Italian automotive supply chain," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(1), pages 1-21, January.
    2. Roberto Basile & Anna Giunta, 2005. "Things change. Foreign market penetration and firms’ behaviour in industrial districts: an empirical analysis," ISAE Working Papers 48, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    3. Adelheid Holl & Ruth Rama, 2014. "Foreign Subsidiaries and Technology Sourcing in Spain," Industry and Innovation, Taylor & Francis Journals, vol. 21(1), pages 43-64, January.
    4. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2012. "Internationalisation and the agglomeration effect in the global value chain: the case of Italian automotive suppliers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(3), pages 267-290.
    5. Olivier Crevoisier & Frédéric Quiquerez, 2005. "Inter-regional corporate ownership and regional autonomy: the case of Switzerland," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(4), pages 663-689, December.
    6. Brouwer Aleid & Pellenbarg Pieter, 2011. "The Importance of Place in Corporate Identity an Investigation on the Presence of Old Dutch Firms on the Internet," European Spatial Research and Policy, Sciendo, vol. 18(2), pages 79-94, November.
    7. Frank Lasch & Frank Robert & Frédéric Roy, 2013. "Regional determinants of ICT new firm formation," Small Business Economics, Springer, vol. 40(3), pages 671-686, April.
    8. Driffield, Nigel & Love, James H. & Yang, Yong, 2016. "Reverse international knowledge transfer in the MNE: (Where) does affiliate performance boost parent performance?," Research Policy, Elsevier, vol. 45(2), pages 491-506.
    9. Lisa De Propris, 2005. "Mapping local production systems in the UK: Methodology and application," Regional Studies, Taylor & Francis Journals, vol. 39(2), pages 197-211.
    10. M. Dakhli & D. De Clercq, 2003. "Human Capital, Social Capital and Innovation: A Multi-Country Study," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/211, Ghent University, Faculty of Economics and Business Administration.
    11. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    12. Hervás Oliver, José Luís, 2015. "How do multinational enterprises co-locate in industrial districts? An introduction to the integration of alternative explanations from international business and economic geography literatures," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 32, pages 115-132.
    13. Brouwer Aleid, 2010. "The Old and the Stubborn? Firm Characteristics and Relocation in the Netherlands," European Spatial Research and Policy, Sciendo, vol. 17(1), pages 41-60, June.

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