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Clustering, MNEs, and Innovation: Who Benefits and How?
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.ORCID iD: 0000-0002-5871-8571
2013 (English)In: International Journal of the Economics of Business, ISSN 1357-1516, E-ISSN 1466-1829, Vol. 20, no 2, 203-227 p.Article in journal (Refereed) Published
Abstract [en]

This paper explores three under-researched questions in the literature on multinational enterprises (MNEs), clustering, and innovation. First, to what extent does multinationality lead to higher rates of innovation activity and performance? Second, what, if any, is the link between MNE cluster location and innovation inputs and outputs? Third, are there any significant differences between enterprises belonging to domestic and overseas MNEs in these regards? Evidence is based primarily on 11,775 firms derived from the UK Community Innovation Survey 2007. Diversity in the regional economy exerts the most consistent positive influence, followed by the scale of employment in the enterprise's own industry. Enterprises belonging to domestic MNEs appear to exert higher levels of innovation effort. However, evidence regarding their superiority in innovation outputs was weaker. Contrary to Michael Porter's work, it appears that enterprises belonging to overseas firms benefit more than domestic firms.

Place, publisher, year, edition, pages
2013. Vol. 20, no 2, 203-227 p.
Keyword [en]
Clustering, Innovation, Multinational Enterprise
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-134154DOI: 10.1080/13571516.2013.782980ScopusID: 2-s2.0-84880277293OAI: diva2:665625

QC 20131120

Available from: 2013-11-20 Created: 2013-11-18 Last updated: 2013-11-20Bibliographically approved

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