IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/14810_3.html
   My bibliography  Save this book chapter

The influence of clustering on MNE location and innovation in Great Britain

In: Entrepreneurship, Social Capital and Governance

Author

Listed:
  • Gary A.S. Cook
  • Hans Lööf
  • Naresh R. Pandit
  • Börje Johansson

Abstract

This book highlights the role of entrepreneurship, social capital and governance for regional economic development. In recent decades, many researchers have claimed that entrepreneurship is the most critical factor in sustaining regional economic growth. However, most entrepreneurship research is undertaken without considering the fundamental importance of the regional context. Other research has emphasized the role of social capital but there are substantial problems in empirically relating measures of social capital to regional economic development.

Suggested Citation

  • Gary A.S. Cook & Hans Lööf & Naresh R. Pandit & Börje Johansson, 2012. "The influence of clustering on MNE location and innovation in Great Britain," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship, Social Capital and Governance, chapter 3, pages 53-82, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:14810_3
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781781002834.00008.xml
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Borje Johansson & Hans Loof, 2008. "Innovation Activities Explained By Firm Attributes And Location," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(6), pages 533-552.
    2. Cohendet, Patrick, et al, 1999. "Knowledge Coordination, Competence Creation and Integrated Networks in Globalised Firms," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 225-241, March.
    3. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    4. Mark Jenkins & Stephen Tallman, 2010. "The shifting geography of competitive advantage: clusters, networks and firms," Journal of Economic Geography, Oxford University Press, vol. 10(4), pages 599-618, July.
    5. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    6. Dupuy, Claude & Gilly, Jean-Pierre, 1999. "Industrial Groups and Territories: The Case of Matra-Marconi-Space in Toulouse," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 207-223, March.
    7. Bas, Christian Le & Sierra, Christophe, 2002. "'Location versus home country advantages' in R&D activities: some further results on multinationals' locational strategies," Research Policy, Elsevier, vol. 31(4), pages 589-609, May.
    8. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    9. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    10. Michael Pfaffermayr & Christian Bellak, 2002. "Why Foreign-owned Firms are Different: A Conceptual Framework and Empirical Evidence for Austria," Palgrave Macmillan Books, in: Rolf Jungnickel (ed.), Foreign-owned Firms, chapter 2, pages 13-57, Palgrave Macmillan.
    11. Buesa, Mikel & Heijs, Joost & Baumert, Thomas, 2010. "The determinants of regional innovation in Europe: A combined factorial and regression knowledge production function approach," Research Policy, Elsevier, vol. 39(6), pages 722-735, July.
    12. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(3), pages 255-255, May.
    13. Frenz, Marion & Ietto-Gillies, Grazia, 2009. "The impact on innovation performance of different sources of knowledge: Evidence from the UK Community Innovation Survey," Research Policy, Elsevier, vol. 38(7), pages 1125-1135, September.
    14. Roberta Capello, 2002. "Entrepreneurship and spatial externalities: Theory and measurement," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(3), pages 387-402.
    15. John Cantwell & Simona Iammarino, 2000. "Multinational Corporations and the Location of Technological Innovation in the UK Regions," Regional Studies, Taylor & Francis Journals, vol. 34(4), pages 317-332.
    16. Foss, Nicolai J. & Pedersen, Torben, 2002. "Transferring knowledge in MNCs: The role of sources of subsidiary knowledge and organizational context," Journal of International Management, Elsevier, vol. 8(1), pages 49-67.
    17. Lee, Chang-Yang, 2009. "Do firms in clusters invest in R&D more intensively? Theory and evidence from multi-country data," Research Policy, Elsevier, vol. 38(7), pages 1159-1171, September.
    18. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    19. D Sethi & S E Guisinger & S E Phelan & D M Berg, 2003. "Trends in foreign direct investment flows: a theoretical and empirical analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 315-326, July.
    20. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    21. Ambos, Bjorn, 2005. "Foreign direct investment in industrial research and development: A study of German MNCs," Research Policy, Elsevier, vol. 34(4), pages 395-410, May.
    22. Shige Makino & Chung-Ming Lau & Rhy-Song Yeh, 2002. "Asset-Exploitation Versus Asset-Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 403-421, September.
    23. Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), 2012. "Entrepreneurship, Social Capital and Governance," Books, Edward Elgar Publishing, number 14810.
    24. Angels Pelegrin & Catalina Bolance, 2008. "Regional Foreign Direct Investment in Manufacturing. Do Agglomeration Economies Matter?," Regional Studies, Taylor & Francis Journals, vol. 42(4), pages 505-522.
    25. Edwin Mansfield, 1963. "The Speed of Response of Firms to New Techniques," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 77(2), pages 290-311.
    26. Head, C. Keith & Ries, John C. & Swenson, Deborah L., 1999. "Attracting foreign manufacturing: Investment promotion and agglomeration," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 197-218, March.
    27. Julian Birkinshaw & Neil Hood, 2000. "Characteristics of Foreign Subsidiaries in Industry Clusters," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(1), pages 141-154, March.
    28. Stephanie Robson & Greg Haigh, 2008. "First findings from the UK Innovation Survey 2007," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 2(4), pages 47-53, April.
    29. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    30. Hugo Erken & Marcel Kleijn, 2010. "Location factors of international R&D activities: an econometric approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(3), pages 203-232.
    31. Catherine Beaudry & Stefano Breschi, 2003. "Are firms in clusters really more innovative?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(4), pages 325-342.
    32. Homin Chen & Tain-Jy Chen, 1998. "Network Linkages and Location Choice in Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(3), pages 445-467, September.
    33. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1.
    34. Rene Belderbos & Kyoji Fukao & Tomoko Iwasa, 2009. "Foreign and domestic R&D investment," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(4), pages 369-380.
    35. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    36. Corinne Autant-Bernard, 2001. "The Geography Of Knowledge Spillovers And Technological Proximity," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(4), pages 237-254.
    37. Cantwell, John & Janne, Odile, 1999. "Technological globalisation and innovative centres: the role of corporate technological leadership and locational hierarchy1," Research Policy, Elsevier, vol. 28(2-3), pages 119-144, March.
    38. Lilach Nachum, 2000. "Economic Geography and the Location of TNCs: Financial and Professional Service FDI to the USA," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(3), pages 367-385, September.
    39. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
    40. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    41. Alan M Rugman & Alain Verbeke, 2007. "Liabilities of regional foreignness and the use of firm-level versus country-level data: a response to Dunning et al. (2007)," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 200-205, January.
    42. Swann, G. M. Peter & Prevezer, Martha & Stout, David (ed.), 1998. "The Dynamics of Industrial Clustering: International Comparisons in Computing and Biotechnology," OUP Catalogue, Oxford University Press, number 9780198289593.
    43. Wilbur Chung & Juan Alcácer, 2002. "Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States," Management Science, INFORMS, vol. 48(12), pages 1534-1554, December.
    44. Raffaello Bronzini, 2007. "FDI Inflows, Agglomeration and Host Country Firms' Size: Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 41(7), pages 963-978.
    45. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 81-98, March.
    46. Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, vol. 28(2-3), pages 179-193, March.
    47. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
    48. Paola Criscuolo & Rajneesh Narula & Bart Verspagen, 2005. "Role of home and host country innovation systems in r&d internationalisation: a patent citation analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(5), pages 417-433.
    49. Ivo Zander, 2002. "The formation of international innovation networks in the multinational corporation: an evolutionary perspective," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(2), pages 327-353.
    50. Ian R. Gordon & Paul C. Cheshire, 1998. "original: Territorial competition: Some lessons for policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 32(3), pages 321-346.
    51. Robert Evenson, 1984. "International Invention: Implications for Technology Market Analysis," NBER Chapters, in: R&D, Patents, and Productivity, pages 89-126, National Bureau of Economic Research, Inc.
    52. Rugman, Alan M. & Brewer, Thomas L. (ed.), 2001. "The Oxford Handbook of International Business," OUP Catalogue, Oxford University Press, number 9780199241828.
    53. Kozul-Wright, Richard & Rowthorn, Robert, 1998. "Spoilt for Choice? Multinational Corporations and the Geography of International Production," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 74-92, Summer.
    54. Wheeler, David & Mody, Ashoka, 1992. "International investment location decisions : The case of U.S. firms," Journal of International Economics, Elsevier, vol. 33(1-2), pages 57-76, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vasileios Kyriazis & Theodore Metaxas, 2023. "Markusen’s Typology with a “European” Twist, the Examples of the French Aerospace Valley Cluster and the Andalucia Aerospace Cluster," World, MDPI, vol. 4(1), pages 1-17, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gary A.S. Cook & Naresh R. Pandit, 2014. "Agglomeration and flows of outward direct investment: an analysis of financial services in the United Kingdom," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Agglomeration, Clusters and Entrepreneurship, chapter 3, pages 52-65, Edward Elgar Publishing.
    2. Gary A.S. Cook & Naresh R. Pandit, 2012. "Clustering and the Location of Multinational Enterprises: An Exploration of Financial Services in London," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), The Regional Economics of Knowledge and Talent, chapter 11, Edward Elgar Publishing.
    3. Cook, Gary A.S. & Pandit, Naresh R. & Lööf, Hans & Johansson, Börje, 2012. "Geographic clustering and outward foreign direct investment," International Business Review, Elsevier, vol. 21(6), pages 1112-1121.
    4. Claver-Cortés, Enrique & Marco-Lajara, Bartolome & Manresa-Marhuenda, Encarnación & García-Lillo, F. & Seva-Larrosa, Pedro, 2017. "Location Decisions and Agglomeration Economies: Domestic and Foreign Companies," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 39, pages 99-135.
    5. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    6. Lorena M. D’Agostino & Grazia D. Santangelo, 2012. "Do Overseas R&D Laboratories in Emerging Markets Contribute to Home Knowledge Creation?," Management International Review, Springer, vol. 52(2), pages 251-273, April.
    7. Jindra, Björn & Hassan, Sohaib S. & Cantner, Uwe, 2016. "What does location choice reveal about knowledge-seeking strategies of emerging market multinationals in the EU?," International Business Review, Elsevier, vol. 25(1), pages 204-220.
    8. Pengfei Li & Harald Bathelt, 2018. "Location strategy in cluster networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 967-989, October.
    9. Sandro Montresor & Antonio Vezzani, 2015. "On the R&D giants’ shoulders: do FDI help to stand on them?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 33-60, March.
    10. Henry Wai‐Chung Yeung, 2009. "Transnational Corporations, Global Production Networks, and Urban and Regional Development: A Geographer's Perspective on Multinational Enterprises and the Global Economy," Growth and Change, Wiley Blackwell, vol. 40(2), pages 197-226, June.
    11. Cantner, Uwe & Günther, Jutta & Hassan, Sohaib Shahzad & Jindra, Björn, 2013. "Outward FDI from the Central and Eastern European Transition Economies – A Discrete Choice Analysis of Location Choice within the European Union," MPRA Paper 51817, University Library of Munich, Germany, revised 04 Jun 2013.
    12. Naveen Kumar Jain & Tanvi Kothari & Vikas Kumar, 2016. "Location Choice Research: Proposing New Agenda," Management International Review, Springer, vol. 56(3), pages 303-324, June.
    13. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    14. Cantner, Uwe & Günther, Jutta & Hassan, Sohaib Shahzad & Jindra, Björn, 2013. "Outward FDI from Central and East European Transition Economies – A discrete choice analysis of location within the EU," MPRA Paper 51804, University Library of Munich, Germany, revised 12 Aug 2013.
    15. Ascani, Andrea & Bettarelli, Luca & Resmini, Laura & Balland, Pierre-Alexandre, 2020. "Global networks, local specialisation and regional patterns of innovation," Research Policy, Elsevier, vol. 49(8).
    16. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    17. repec:lic:licosd:22709 is not listed on IDEAS
    18. Jonathan Jones, 2017. "Agglomeration economies and the location of foreign direct investment: A meta-analysis," Journal of Regional Science, Wiley Blackwell, vol. 57(5), pages 731-757, November.
    19. Thomas J. Hannigan & Alessandra Perri & Vittoria Giada Scalera, 2016. "The Dispersed Multinational: Does Connectedness Across Spatial Dimensions Lead to Broader Technological Search?," Working Papers 11, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    20. Yuri Jo & Chang-Yang Lee, 2014. "Technological Capability, Agglomeration Economies and Firm Location Choice," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1337-1352, August.
    21. Liu, Meng-chun & Chen, Shin-Horng, 2012. "MNCs’ offshore R&D networks in host country's regional innovation system: The case of Taiwan-based firms in China," Research Policy, Elsevier, vol. 41(6), pages 1107-1120.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:14810_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.