 What determines the location choice of multinational firms in the information and communication technologies sector?Iulia Siedschlag (), Xiaoheng Zhang and Donal Smith Economics of Innovation and New Technology, 2013, vol. 22, issue 6, 581-600 Abstract: We analyse the location decisions of 7931 foreign affiliates in the information and communication technologies (ICT) sector established in the European Union (EU) over the period 1998--2008. Our results suggest that, on average, the location probability of foreign-owned firms in ICT industries increased with market size, market potential, the presence of other foreign-owned firms in the ICT sector, human capital, income tax, and the size of the services sector in the neighbouring regions. Labour costs and human capital in neighbouring regions decreased the location probability. Further, our estimates suggest that multinationals based in the EU and the USA were attracted by market size and agglomeration economies from other foreign-owned firms in the ICT sector. However, they responded differently with respect to other location determinants such as income tax rates, human capital and innovation intensity. Date: 2013 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:ecinnt:v:22:y:2013:i:6:p:581-600 Ordering information: This journal article can be ordered from DOI: 10.1080/10438599.2013.783266 Access Statistics for this article Economics of Innovation and New Technology is currently edited by Professor Cristiano Antonelli More articles in Economics of Innovation and New Technology from Taylor & Francis Journals |
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