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

Constantina Kottaridi, Marina Papanastassiou and Christos Pitelis

No 7, Working Papers from University of Peloponnese, Department of Economics

Abstract: 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.

Keywords: MNE subsidiaries; R&D laboratory; internal and external environment; productive opportunity (search for similar items in EconPapers)
Pages: 34 pages
Date: 2007
New Economics Papers: this item is included in nep-cse and nep-ino
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Related works:
Working Paper: Determinants of MNE Subsidiaries Decisions to Set Up Own R&D Laboratories - Theory and Evidence (2009)
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