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Recent Location of Foreign-owned Research and Development Activities by Large Multinational Corporations in the European Regions: The Role of Spillovers and Externalities

Author

Listed:
  • John Cantwell
  • Lucia Piscitello

Abstract

Cantwell J. and Piscitello L. (2005) Recent location of foreign-owned research and development activities by large multinational corporations in the European regions: the role of spillovers and externalities, Regional Studies39, 1-16. This paper examines the role of spillovers and externalities in influencing the recent siting of foreign-owned research and development activities in European regions. In accordance with the literature on knowledge creation in multinational corporations, the location of foreign-owned research tends to agglomerate depending upon the potential for the following different sources of spillovers and externalities: (1) intra- industry spillovers or specialization externalities associated with the presence of a wide-ranging collection of firms active in the same sector; (2) inter-industry spillovers or diversity externalities associated with the co-presence of firms working in different fields; and (3) science-technology spillovers and externalities stemming from the presence of a munificent scientific and educational infrastructure. Additionally, benefits from spillovers decline with distance, but this holds especially for intra- and inter-industry spillovers. Cantwell J. et Piscitello L. (2005) L'implantation recente dans les regions d'Europe des centres de recherche a capital majoritaire etranger par les societes multinationales: le role des retombees et des effets externes, Regional Studies39, 1-16. Cet article cherche a examiner le role des retombees et des effets externes quant a l'implantation recente dans les regions d'Europe des centres de recherche a capital majoritaire etranger. Conformement a la documentation sur la creation de la connaissance dans les societes multinationales, les emplacements des centres de recherche a capital majoritaire etranger ont tendance a s'agglomerer en fonction des differentes sources de retombees et d'effets externes: a savoir, (1) des retombees intraindustrielles ou des effets externes dus a la specialisation, qui s'associent a la presence d'un large parc d'entreprises du meme secteur; (2) des retombees interindustrielles ou des effets externes dus a la diversite, qui s'associent a la presence des entreprises de divers secteurs; et (3) des retombees scientifiques et technologiques, et des effets externes qui remontent a la presence d'une infrastructure scientifique et scolaire avantageuse. En plus, il s'avere que les retombees diminuent en fonction de la distance, surtout pour les retombees intra et interindustrielles. Cantwell J. und Piscitello L. (2005) Fur in auslandischem Besitz befindliche Forschungs-und Entwicklungsunternehmen neuerlich in europaischen Regionen von grossen multinationalen Firmen gewahlte Standorte: die Rolle von Verbreitung und externen Effekten, Regional Studies39, 1-16. Dieser Aufsatz untersucht die Rolle von Verbreitung und externen Effekten bei der Beeinflussung kurzlich erfolgter Standortwahlen fur in auslandischem Besitz befindliche Forschungs-und Entwicklungunternehmen in europaischen Regionen. In ubereinstimmung mit der Literatur zur Wissensgenerierung in multinationalen Korporationen stellen die Autoren fest, dass die Standortwahl von in auslandischem Besitz befindlichen Forschungszentren zur Ballung neigt, je nach Potential fur die folgenden verschiedenen Quellen fur Verbreitung und externe Effekte: (1) innerbetriebliche Verbreitung oder spezializierungsexterne Effekte in Verbindung mit dem Vorhandensein einer breitgefacherten Palette von im gleichen Sektor tatigen Firmen; (2) innerbetriebliche Verbreitung oder Vielfalt externer Effekte in Verbindung mit gleichzeitiger Anwesenheit von Firmen, die auf anderen Gebieten tatig sind; und (3) wissenschaftlich-technologische Verbreitung und externe Effekte, die sich aus dem Vorhandensein einer grosszugigen Wissenschafts-und Bildungsstruktur ergeben. Daruberhinaus wird festgestellt, dass sich aus Verbreitung ergebende Vorteile mit zunehmender Entfernung abnehmen, doch dies bezieht sich vorallem auf inner-und zwischenbetriebliche Verbreitung. Cantwell J. y Piscitello L. (2005) La reciente localizacion de actividades de investigacion y desarrollo extranjeras por parte de corporaciones multinacionales en las regiones europeas: el rol de los efectos de arrastre (spillovers) y de las externalidades, Regional Studies39, 1-16. Este articulo examina de que forma los efectos de arrastre (spillovers) y las externalidades han afectado la reciente localizacion de actividades de investigacion y desarrollo extranjeras en regiones europeas. De acuerdo con la literatura sobre creacion de conocimiento dentro de las corporaciones multinacionales, descubrimos que las actividades de investigacion extranjeras tienden a aglomerarse, dependiendo del potencial que exista para que se den las siguientes fuentes de efectos de arrastre y externalidades: (1) efectos de arrastre intra-industriales o externalidades derivadas de la especializacion, los cuales estan asociados con la presencia de un conjunto de empresas de caracter diverso que permanecen activas dentro del mismo sector; (2) efectos de arrastre inter-industriales o externalidades derivadas de la diversidad, los cuales estan asociados con la presencia conjunta de empresas que trabajan en diferentes campos; y (3) efectos de arrastre cientifico- tecnologicos y externalidades derivadas de la presencia de una infraestructura educativa y cientifica munificiente. Asimismo, encontramos que los beneficios que se generan a partir de los efectos de arrastre disminuyen con la distancia, especialmente en el caso de los efectos de arrastre intra- e inter-industriales.

Suggested Citation

  • John Cantwell & Lucia Piscitello, 2005. "Recent Location of Foreign-owned Research and Development Activities by Large Multinational Corporations in the European Regions: The Role of Spillovers and Externalities," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 1-16.
  • Handle: RePEc:taf:regstd:v:39:y:2005:i:1:p:1-16
    DOI: 10.1080/0034340052000320824
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