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Innovation drivers, value chains and the geography of multinational corporations in Europe

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  • Crescenzi, Riccardo
  • Pietrobelli, Carlo
  • Rabellotti, Roberta

Abstract

This paper investigates the geography of multinational corporations’ investments in the EU regions. The ‘traditional’ sources of location advantages (i.e. agglomeration economies, market access and labour market conditions) are considered together with innovation and socio-institutional drivers of investments, captured by means of regional ‘social filter’ conditions. This makes it possible to empirically assess the different role played by such advantages in the location decision of investments at different stages of the value chain and disentangle the differential role of national vs. regional factors. The empirical analysis covers the EU-25 regions and suggests that regional socio-economic conditions are crucially important for the location decisions of investments in the most sophisticated knowledge-intensive stages of the value chain.

Suggested Citation

  • Crescenzi, Riccardo & Pietrobelli, Carlo & Rabellotti, Roberta, 2014. "Innovation drivers, value chains and the geography of multinational corporations in Europe," LSE Research Online Documents on Economics 51482, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:51482
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    More about this item

    Keywords

    Innovation; multinationals; systems of innovation; value chains; regions; European Union;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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