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Jean-Louis Mucchielli and Thierry Mayer

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Edited by Jean-Louis Mucchielli and Thierry Mayer

This book analyses how foreign direct investors choose their locations, whilst exploring the forces which shape international economic geography. Although these two issues are, to some extent, inter-related, researchers have only recently acknowledged the similarity of economic geography and international business approaches to the empirical assessment of likely causes of the degree of spatial concentration observed in many modern industries.
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Pei Yu and Jean- Louis Mucchielli

This chapter focuses on MNCs’ R & D co-location strategies in China, and enriches recent studies by both theoretical and empirical aspects. Firstly, it constructs a conceptual framework on R & D co-location strategies, by combining location theory with R & D networking literature. Secondly, instead of a national level which causes aggregation bias, it focuses on a city level. It verifies the framework used by 185 US, 107 European and 115 Asian R & D affiliates’ location strategies across 27 Chinese cities, during the period 1992–2011. Thirdly, it adopts discrete choice models, which consider host geographic heterogeneity, to examine theoretical hypotheses. The results confirm MNCs’ cross-country differences in co-location strategies: US firms attach importance to external linkages, such as public knowledge resources and foreign R & D affiliates; however, European firms prefer internal linkages, such as intra-firm forward linkage, home country agglomeration and intra-industry spillovers. Asian firms adopt traditional cost- and market-seeking strategies. In addition, China’s geographic structure also impacts in a variety of ways on the sample firms. Key words: offshore R & D affiliates, co-location strategies, cross-country differences, China.

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Nathalie Avallone, Séverine Chédor and Jean-Louis Mucchielli