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Determinants of MNE subsidiaries decision to set uo own R&D laboratories: Theory and Evidence

  • Constantina Kottaridi
  • Marina Papanastassiou
  • Christos Pitelis

We explore the determinants of MNE subsidiaries decisions to set-up own R&D laboratories drawing on evidence from UK regions. In this context, we also test for the interaction between firm’s internal and external environments. We also integrate extant IB and strategic management literatures and incorporate recent debates in New Economic Geography (NEG) in specifying the ‘external environment’. We find support for the role of firm’s ‘productive opportunity’ and predictions of the NEG on the basis of an analysis of primary data. We discuss implications for managerial practice and government regional policies.

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File URL: http://econ.uop.gr/~econ/RePEc/pdf/Kot_Pap_Pit.pdf
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Paper provided by University of Peloponnese, Department of Economics in its series Working Papers with number 007.

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Length: 34 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:uop:wpaper:007
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Web page: http://econ.uop.gr/~econ/

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  1. A. J. Dixon & H. R. Seddi, 1996. "An Analysis of R & D Activities in North East England Manufacturing Firms: The Results of a Sample Survey," Regional Studies, Taylor & Francis Journals, vol. 30(3), pages 287-294.
  2. Davis, Lee N. & Meyer, Klaus E., 2004. "Subsidiary research and development, and the local environment," International Business Review, Elsevier, vol. 13(3), pages 359-382, June.
  3. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2006. "Innovation and economic performance in services: a firm-level analysis," Cambridge Journal of Economics, Oxford University Press, vol. 30(3), pages 435-458, May.
  4. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-85, March.
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  6. Zanfei, Antonello, 2000. "Transnational Firms and the Changing Organisation of Innovative Activities," Cambridge Journal of Economics, Oxford University Press, vol. 24(5), pages 515-42, September.
  7. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  8. 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.
  9. Markusen, James R. & Venables, Anthony J., 1998. "Multinational firms and the new trade theory," Journal of International Economics, Elsevier, vol. 46(2), pages 183-203, December.
  10. Veugelers, Reinhilde, 1997. "Internal R & D expenditures and external technology sourcing," Research Policy, Elsevier, vol. 26(3), pages 303-315, October.
  11. Julian Birkinshaw & Neil Hood, 2000. "Characteristics of Foreign Subsidiaries in Industry Clusters," Journal of International Business Studies, Palgrave Macmillan, vol. 31(1), pages 141-154, March.
  12. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan, vol. 35(3), pages 255-255, May.
  13. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan, vol. 35(2), pages 81-98, March.
  14. Ram Mudambi & Pietro Navarra, 2004. "Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs," Journal of International Business Studies, Palgrave Macmillan, vol. 35(5), pages 385-406, September.
  15. Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 1-24, March.
  16. Taggart, James & Hood, Neil, 1999. "Determinants of autonomy in multinational corporation subsidiaries," European Management Journal, Elsevier, vol. 17(2), pages 226-236, April.
  17. G R G Benito & B Gr�gaard & R Narula, 2003. "Environmental influences on MNE subsidiary roles: economic integration and the Nordic countries," Journal of International Business Studies, Palgrave Macmillan, vol. 34(5), pages 443-456, September.
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