EconPapers    
Economics at your fingertips  
 

Determinants of MNE Subsidiaries Decision to Set up Own R&D Laboratories: The Choice of Region

Constantina Kottaridi, Marina Papanastassiou and Christos Pitelis
Additional contact information
Marina Papanastassiou: Copenhagen Business School

Chapter Chapter 11 in Innovation, Growth and Competitiveness, 2011, pp 235-257 from Springer

Abstract: Abstract We test for the determinants of Multinational Enterprise (MNE) headquarters decisions to augment the innovative capabilities of the MNE group by granting mandates to their subsidiaries to set-up own R&D labs in UK regions, using a unique primary data set. Our findings suggest that the best predictor for a subsidiary receiving a mandate, is the strength of its ‘productive opportunity’ (the interaction between internal competencies and external environment). We employ a measure that augments the external environment to include regional agglomeration characteristics. Our findings highlight the importance of subsidiary, industry and locational characteristics, as well as MNE strategy to leverage subsidiary skills in determining the location of R&D activity in the global economy and in enhancing MNE innovative potential.

Keywords: Innovative Activity; Foreign Subsidiary; Foreign Affiliate; Technological Competency; Productive Opportunity (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-642-14965-8_11

Ordering information: This item can be ordered from
http://www.springer.com/9783642149658

DOI: 10.1007/978-3-642-14965-8_11

Access Statistics for this chapter

More chapters in Advances in Spatial Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-23
Handle: RePEc:spr:adspcp:978-3-642-14965-8_11