Authors: John Cantwell, Yanli Zhang
Addresses: Rutgers Business School, 111 Washington Street, Newark, NJ 07102, USA. ' School of Business, Montclair State University, Montclair, NJ 07043, USA
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.
Keywords: multinational corporations; MNCs; clusters; location hierarchies; knowledge spillovers; science-technology linkages; innovation; local networks.
International Journal of Technology Management, 2011 Vol.54 No.1, pp.116 - 132
Available online: 04 Mar 2011 *Full-text access for editors Access for subscribers Purchase this article Comment on this article