Recent location of foreign-owned research and development activities by large multinational corporations in the European regions: The role of spillovers and externalities

John Cantwell, Lucia Piscitello

Research output: Contribution to journalArticlepeer-review

171 Scopus citations

Abstract

This paper examines the role of spillovers and externalities in influencing the recent siting of foreign-owned research and development activities in European regions. In accordance with the literature on knowledge creation in multinational corporations, the location of foreign-owned research tends to agglomerate depending upon the potential for the following different sources of spillovers and externalities: (1) intra-industry spillovers or specialization externalities associated with the presence of a wideranging collection of firms active in the same sector; (2) inter-industry spillovers or diversity externalities associated with the co-presence of firms working in different fields; and (3) science-technology spillovers and externalities stemming from the presence of a munificent scientific and educational infrastructure. Additionally, benefits from spillovers decline with distance, but this holds especially for intra- and inter-industry spillovers.

Original languageEnglish (US)
Pages (from-to)1-16
Number of pages16
JournalRegional Studies
Volume39
Issue number1
DOIs
StatePublished - Feb 2005

All Science Journal Classification (ASJC) codes

  • Environmental Science(all)
  • Social Sciences(all)

Keywords

  • European regions
  • Externalities
  • Multinational corporations
  • Research and development activities
  • Spillovers

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