Innovative MNEs’ Subsidiaries in different domestic environments
Foreign firms performing R&D abroad present two types of implications for the local systems of innovation, which can be described as a loop going in two directions: R&D-intensive affiliates may contribute to the generation of innovation, upgrading the technological level of the host economy; on the other hand, their innovation dynamics may be conditioned by locations. The aim is to analyse the local embeddedness of foreign firms measuring the impact of the innovation sources, the role of public funds and the cooperative relationships in the innovativeness of foreign firms. The sample is constructed on data from the Community Innovation Survey (CIS 3) and the analysis is replicated for three European countries: Germany, Norway and Spain. Our aim is to asses to what extent there exist countries’ and industries’ effects on the innovative activities of MNE subsidiaries.
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