Towards a technology-seeking explanation of U.S. direct investment in the United Kingdom

John A. Cantwell; John H. Dunning; Odile E.M. Janne

doi:10.1016/j.intman.2003.12.002

Towards a technology-seeking explanation of U.S. direct investment in the United Kingdom

John A. Cantwell, John H. Dunning, Odile E.M. Janne

Rutgers Business School, Management & Global Business

Research output: Contribution to journal › Article › peer-review

52 Scopus citations

Abstract

This article examines the evolution of the industrial structure of local technological development by U.S.-owned multinational enterprises (MNEs) in the United Kingdom in the 1950s and over the more recent period 1969-1995. Using a survey of U.S. subsidiaries in the United Kingdom and more recent data on patents granted in the United States to the largest MNEs, the article illustrates the effect of a shift toward internationally integrated strategies for corporate technological development. The local innovation of MNEs has moved closer to the industries of host country technological advantage, and hence to utilising location-specific capabilities as a source of competitive advantage in the MNE. We interpret this as a shift from an asset-exploiting toward an asset-augmenting form of foreign direct investment (FDI).

Original language	English (US)
Pages (from-to)	5-20
Number of pages	16
Journal	Journal of International Management
Volume	10
Issue number	1 SPEC ISS.
DOIs	https://doi.org/10.1016/j.intman.2003.12.002
State	Published - 2004

All Science Journal Classification (ASJC) codes

Business and International Management
Finance
Strategy and Management

Keywords

Corporate innovation systems
Foreign direct investment
United Kingdom
United States

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10.1016/j.intman.2003.12.002

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title = "Towards a technology-seeking explanation of U.S. direct investment in the United Kingdom",

abstract = "This article examines the evolution of the industrial structure of local technological development by U.S.-owned multinational enterprises (MNEs) in the United Kingdom in the 1950s and over the more recent period 1969-1995. Using a survey of U.S. subsidiaries in the United Kingdom and more recent data on patents granted in the United States to the largest MNEs, the article illustrates the effect of a shift toward internationally integrated strategies for corporate technological development. The local innovation of MNEs has moved closer to the industries of host country technological advantage, and hence to utilising location-specific capabilities as a source of competitive advantage in the MNE. We interpret this as a shift from an asset-exploiting toward an asset-augmenting form of foreign direct investment (FDI).",

keywords = "Corporate innovation systems, Foreign direct investment, United Kingdom, United States",

author = "Cantwell, {John A.} and Dunning, {John H.} and Janne, {Odile E.M.}",

note = "Funding Information: The authors are grateful for the support under the EC-funded project “Assessing the Impact of Technological Innovation and Globalisation: The Effects on Growth and Employment” (AITEG), which was coordinated by Jonathan Michie of Birkbeck College, London, as part of the Key Action for Socio-Economic Research (contract no. HPSE-CT-1999-00043). We are also grateful to two anonymous referees for valuable comments and suggestions.",

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AU - Cantwell, John A.

AU - Dunning, John H.

AU - Janne, Odile E.M.

N1 - Funding Information: The authors are grateful for the support under the EC-funded project “Assessing the Impact of Technological Innovation and Globalisation: The Effects on Growth and Employment” (AITEG), which was coordinated by Jonathan Michie of Birkbeck College, London, as part of the Key Action for Socio-Economic Research (contract no. HPSE-CT-1999-00043). We are also grateful to two anonymous referees for valuable comments and suggestions.

PY - 2004

Y1 - 2004

N2 - This article examines the evolution of the industrial structure of local technological development by U.S.-owned multinational enterprises (MNEs) in the United Kingdom in the 1950s and over the more recent period 1969-1995. Using a survey of U.S. subsidiaries in the United Kingdom and more recent data on patents granted in the United States to the largest MNEs, the article illustrates the effect of a shift toward internationally integrated strategies for corporate technological development. The local innovation of MNEs has moved closer to the industries of host country technological advantage, and hence to utilising location-specific capabilities as a source of competitive advantage in the MNE. We interpret this as a shift from an asset-exploiting toward an asset-augmenting form of foreign direct investment (FDI).

AB - This article examines the evolution of the industrial structure of local technological development by U.S.-owned multinational enterprises (MNEs) in the United Kingdom in the 1950s and over the more recent period 1969-1995. Using a survey of U.S. subsidiaries in the United Kingdom and more recent data on patents granted in the United States to the largest MNEs, the article illustrates the effect of a shift toward internationally integrated strategies for corporate technological development. The local innovation of MNEs has moved closer to the industries of host country technological advantage, and hence to utilising location-specific capabilities as a source of competitive advantage in the MNE. We interpret this as a shift from an asset-exploiting toward an asset-augmenting form of foreign direct investment (FDI).

KW - Corporate innovation systems

KW - Foreign direct investment

KW - United Kingdom

KW - United States

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ER -

Towards a technology-seeking explanation of U.S. direct investment in the United Kingdom

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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