Multinationality Matters in Innovation: The Case of the UK Financial Services
The paper starts with a brief summary of theoretical perspectives on the relationship between multinationality and innovation and the move from a centralized and hierarchical perspective to a more decentralized network-based one. Four hypotheses are set up to test the relationship between multinationality and innovation, using data from the Community Innovation Survey 12 for the financial services sector. All models control for the size of the enterprise. The results show that multinationality is positively related to innovation activities. The positive impact of being part of a multinational company (MNC) on the propensity to innovate seems largely due to the fact that MNCs operate in different countries rather than, or more than, to the enterprise being part of a group. The relevance of multinationality appears to be higher, the higher the degree of internationalization of the company of which the enterprise is part. The country of origin of the company appears also to be important.
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Volume (Year): 12 (2005)
Issue (Month): 1 ()
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