Multinationals and Economic Geography

Multinationals and Economic Geography

Location, Technology and Innovation

Simona Iammarino and Philip McCann

After more than fifty years of systematic research on multinational enterprises (MNEs) what is apparent is that there is, as yet, no unified or dominant theory of the MNE. The objective of this book is to bring into focus one particular dimension of MNE behaviour and activity that has been relatively under-researched – namely the geography of the multinational enterprise – as understood through the lens of innovation and technological change. The authors clearly demonstrate that geography is becoming increasingly important for MNEs and, in turn, MNEs are becoming progressively more important for economic geography. The pivot on which this vital relationship turns is the creation, diffusion and management of new knowledge.

Chapter 9: Conclusions: review of the arguments and implications for future research

Simona Iammarino and Philip McCann

Subjects: business and management, international business, economics and finance, economics of innovation, international business, regional economics, geography, economic geography, innovation and technology, economics of innovation, urban and regional studies, regional economics

Extract

In this book we have argued that understanding economic geography is increasingly important for understanding multinational enterprises (MNEs), and in turn MNEs are nowadays playing a critical role in shaping economic geography at various spatial levels, from the local to the global. In particular, our aim has been to demonstrate that, although these relationships between geography and firms are in principle valid for any kind of business or firm, they are particularly valid in the case of MNEs, and also more than ever are particularly important now for MNEs. Moreover, this book has argued that the pivot on which all of these relationship turn is the creation, diffusion and management of new knowledge and technology. Each of the chapters of the book, and also the sequencing of the topics discussed in these chapters, are designed to elaborate these arguments, bringing the reader right up to date with the latest debates.

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