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

Kottaridi, C; Papanastassiou, M; Pitelis, C

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

Kottaridi, C Papanastassiou, M Pitelis, C

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Publisher:: Edward Elgar Publishing
Publication Type:: Chapter
Citation:: Innovation, Growth and Competitiveness: Dynamic Regions in the Knowledge-Based World Economy, 2011, 1, pp. 234 - 257
Issue Date:: 2011-01

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Field	Value	Language
dc.contributor.author	Kottaridi, C	en_US
dc.contributor.author	Papanastassiou, M	en_US
dc.contributor.author	Pitelis, C	en_US
dc.contributor.editor	Nijkamp, P	en_US
dc.contributor.editor	Siedschlag, I	en_US
dc.date.issued	2011-01	en_US
dc.identifier.citation	Innovation, Growth and Competitiveness: Dynamic Regions in the Knowledge-Based World Economy, 2011, 1, pp. 234 - 257	en_US
dc.identifier.isbn	978-3-642-14964-1	en_US
dc.identifier.uri	http://hdl.handle.net/10453/29924
dc.description.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 asMNE strategy to leverage subsidiary skills in determining the location of R&D activity in the global economy and in enhancing MNE innovative potential.	en_US
dc.publisher	Edward Elgar Publishing	en_US
dc.relation.ispartof	Innovation, Growth and Competitiveness: Dynamic Regions in the Knowledge-Based World Economy	en_US
dc.relation.isbasedon	10.1007/978-3-642-14965-8_11	en_US
dc.title	Determinants of MNE Subsidiaries Decision to Set up Own R&D Laboratories: The Choice of Region	en_US
dc.type	Chapter
utslib.location	Cheltenham	en_US
utslib.for	1503 Business and Management	en_US
utslib.citation.edition	1	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Management Discipline
utslib.copyright.status	closed_access
pubs.consider-herdc	false	en_US
pubs.edition	1	en_US
pubs.place-of-publication	Cheltenham	en_US

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 asMNE strategy to leverage subsidiary skills in determining the location of R&D activity in the global economy and in enhancing MNE innovative potential.

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http://hdl.handle.net/10453/29924