Global Strategy and the Acquisition of Local Knowledge How MNCs Enter Regional Knowledge Clusters
The paper addresses two recent interrelated phenomena: High- tech regional knowledge clusters, and globalization of R&D activities by multinational corporations (MNCs). Combining MNC literature; regional development literature; and literature on social networks, the paper discusses determinants of entry modes used by MNCs that localize R&D units in regional knowledge clusters. The paper states that the entry mode used by a MNC depends upon the type of agglomeration economies the latter seeks to appropriate: Those related to network relations; to local labor market specialization; or to institutional specialization. The paper adds theoretical insight into advantages and disadvantages of different entry modes with respect to appropriation of agglomeration economies, and special attention is dedicated to discussing acquisition. Through the use of an empirical case ¾ the entry of five MNCs into the Danish telecommunications cluster in Aalborg, the paper exemplifies its theoretical observations, but also points to how the evolution of a knowledge cluster may be severely affected by MNCs that enter through acquisition.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.druid.dk/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bent Dalum, 1995. "Local and global linkages the radiocommunications cluster in Northern Denmark," Industry and Innovation, Taylor & Francis Journals, vol. 2(2), pages 89-109.
- David Keeble & Frank Wilkinson, 1999. "Collective Learning and Knowledge Development in the Evolution of Regional Clusters of High Technology SMEs in Europe," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 295-303.
- Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-74, February.
- 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.
- 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.
- Foss, Nicolai J. & Pedersen, Torben, 2000. "Transferring Knowledge in MNCs: The Role of Sources of Subsidiary Knowledge and Organizational Context," Working Papers 6-2000, Copenhagen Business School, Department of International Economics and Management.
- Nicolai J. Foss & Torben Pedersen, . "Transferring Knowledge in MNCs: The Role of Sources of Subsidiary Knowledge and Organizational Context," IVS/CBS Working Papers 00-12, Department of Industrial Economics and Strategy, Copenhagen Business School.
- Weijian Shan & Jaeyong Song, 1997. "Foreign Direct Investment and the Sourcing of Technological Advantage: Evidence from the Biotechnology Industry," Journal of International Business Studies, Palgrave Macmillan, vol. 28(2), pages 267-284, June.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- 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.
- Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
- Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
- Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 877-903, December.
When requesting a correction, please mention this item's handle: RePEc:aal:abbswp:02-08. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keld Laursen)
If references are entirely missing, you can add them using this form.