Institutional factors and subnational location choice for multinationals’ R&D subsidiaries

Christian Falaster and Manuel Portugal Ferreira

Innovation & Management Review, 2020, vol. 17, issue 4, 351-367

Abstract: Purpose - Using an institution-based view, this study aims to conceptualize how sub-national institutional characteristics are likely to explain location choice of multinationals’ research and development (R&D) subsidiaries. Design/methodology/approach - In a conceptual paper, this study explores specific institutional facets of the regional environments within a country that are capable of explaining, at least in part, the location choices of multinational corporations’ R&D subsidiaries. Findings - This study thus explores the more nuanced influences of the institutional environments at a subnational level and develops propositions to explain location choices based on the differences of the institutional environments. Originality/value - This study contributes to international business theory by incorporating a location-specific analysis that contrasts to the usual country-level observation on the determinants of firms’ location decisions.

Keywords: Location choice; Regional differences; Institutional environment; Innovation (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:inmrpp:inmr-08-2019-0102

DOI: 10.1108/INMR-08-2019-0102

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