Innovation and location in the multinational firm Online publication date: Sat, 06-Apr-2013
by John Cantwell, Yanli Zhang
International Journal of Technology Management (IJTM), Vol. 54, No. 1, 2011
Abstract: This paper provides an overview of the relationship between multinational corporations (MNCs) and local economic systems. It examines the implications of a decentralisation of innovative activity within MNCs for their interaction with local networks. It is shown that this interaction depends upon the type of cluster, whether a general centre of excellence or a specialised centre. These two principal kinds of cluster are associated with different structures of local knowledge spillovers between firms. Localised science-technology linkages offer a further category of interaction. It is shown how locational hierarchies may affect the locational strategies of MNCs when they disperse innovative activity.
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