The perception of obstacles to innovation. Multinational and domestic firms in Italy.

This paper looks at the perception of obstacles to innovation of both multinational enterprises (MNEs) and domestic firms located in Italy. Drawing on data from the firm-level Italian CIS3, we first explore to what extent innovative behaviours are both firm- (i.e. foreign- versus nationally-owned multinationals, MNEs versus single domestic firms) and region-specific. We then examine whether the perception of obstacles to innovation varies among types of firms and regions.obstacles to innovation, multinational firms, innovation processes, regional location

Employment protection legislation, multinational firms and innovation

The theoretical effects of labour regulations such as employment protection legislation (EPL) on innovation is ambiguous, and empirical evidence has thus far been inconclusive. EPL increases job security and the greater enforceability of job contracts may increase worker investment in innovative activity. On the other hand EPL increases adjustment costs faced by firms, and this may lead to under-investment in activities that are likely to require adjustment, including technologically advanced innovation. In this paper we find empirical evidence that both effects are at work - multinational enterprises locate more innovative activity in countries with high EPL, however they locate more technologically advanced innovation in countries with low EPL.Innovation, employment protection, multinational firm location

Strategic R&D location in European manufacturing industries.

We develop and empirically test a model of foreign R&D investments that takes into account strategic interaction in R&D location decisions by multinational firms in the context of R&D spillovers and foreign technology sourcing strategies. In a two-country, two-firm model with cross investments, the optimal share of R&D performed abroad depends on the efficiency of intra-firm international technology transfer, the degree of inter-firm R&D spillovers, the intensity of product market competition, and the importance of the general knowledge pool. The impact of these factors differs markedly between technology leading firms and technology laggards. We find support for most of the predictions of the model in an empirical analysis of patents based on innovations in foreign countries by 131 leading European manufacturing firms in 22 ISIC industries in 1996-1997. For technology leaders, the share of patents originating in other EU countries responds positively to host country product market competition and is strongly increasing in the level of intellectual property rights protection. Foreign R&D by technology laggards is discouraged by host country competition but increases with the efficiency of (reverse) technology transfer. Foreign R&D of both leaders and laggards increases with the size of the local knowledge pool and the size of production operations in the host country.Competition; Country; Decision; Decisions; Efficiency; Empirical analysis; Factors; Firms; Impact; Industries; Industry; Innovation; Innovations; Intellectual property; Intensity; Interfirm R&D; International; Investment; Investments; Knowledge; Manufacturing; Manufacturing firms; Market; Model; Multinational firms; Optimal; Patents; Prediction; Predictions; Product; R&D; Size; Sourcing; Spillovers; Strategy; Technology; Technology transfer;

The location of innovative activity in Europe

In this paper we use new data to describe how firms from 15 European countries organise their innovative activities. The data matches firm level accounting data with information on the patents that those firms and their subsidiaries have applied for at the European Patents Office. We describe the data in detail

Case study evidence of the extent and nature of foreign subsidiaries' R&D and innovation capability in Hungary

Multinational companies increasingly locate their R&D activities outside their home countries, thus being one of the main contributors to the ongoing process of the internationalisation of R&D. The internationalisation of corporate R&D is gaining momentum and the New Member States of the European Union, including Hungary are increasingly taking part in that process. The present paper analyses three aspects of this topic, first, the characteristics of R&D activities carried out by foreign affiliates in Hungary. Second, what are those locational factors which attract these types of investments to Hungary, distinguishing between production-related and knowledge-seeking R&D and relating locational factors in Hungary to those in the home country. And third, we analyse what the impact of this type of investments on the local economy is, where we also distinguish between production-related and “stand-alone”, knowledge-seeking projects. In the analysis, company case studies were used based on questionnaire-led semi-structured interviews with leading managers of 20 foreign-owned automotive and electronics companies

Ethics and taxation : a cross-national comparison of UK and Turkish firms

This paper investigates responses to tax related ethical issues facing busines

Chinese multinational enterprises' firm-specific advantages and a critic on the international business theory

We argue that the extant literature tends to view that EMNEs do not have FSAs and in particular, innovation-based ownership advantages. This, however, is not a fact but a myth that deserves detailed examination. Drawing on a case study of four Chinese multinationals, we argue that some Chinese multinationals have brilliant innovation capabilities particularly in areas such as services-based innovation, architectural innovation and grafting innovation. This helps to explain their rapid rise and internationalisation. We therefore argue that Dunning’s OLI paradigm is still relevant in the context of EMNEs. However we also accept that the OLI paradigm needs to be taken with a complementary view that EMNEs also internationalise to augment their assets/capabilities. We call for further studies on EMNEs’ FSAs with a broader view of innovatio

Strategic Asset Seeking and Innovation Performance: The Role of Innovation Capabilities and Host Country Institutions

fals

Technological innovation as a source of Chinese multinationals’ firm-specific advantages and internationalization

This paper examines how innovation-related firm-specific ownership advantage (FSA) plays a role in developing the competitive advantage of Chinese multinationals when they internationalize. Based on a review of the existing literature concerning foreign direct investment by emerging economy multinational enterprises (EMNEs), we identify that numerous studies explain this phenomenon on the basis of their location-bound country specific advantages. However, such views do not fully explain the key underlying factors behind the rapid rise and success of many EMNEs as these firms rapidly internationalize and develop global competitiveness in developed markets. The current research explores three leading innovative Chinese EMNEs from the engineering sector: BYD, Sany Heavy Industry and CSR China. We find that their knowledge, and particularly their innovation-creating technological knowledge has contributed greatly to their successful internationalization. The illustrative cases show that the three firms have now moved beyond the infant to the mature stage of EMNE development through developing their technological knowledge in order to realize firm-specific advantage (FSA) through internationalization. This study helps in contributing fresh reflections to the continuing debate concerning the causes of internationalization and global competitive development by EMNEs and the role of their FSAs in these processes

Firm location, Corporate Structure, R&D Investment, Innovation and Productivity

This study elucidates the relationship between localisation of firms, corporate structure, intellectual capital and innovations.The main finding is that a greater concentration of multinational firms, human capital, T&D and universities is significantly and positive associated with research productivity. All other things equal, such as firm size, sector classification, human capital, corporate owner structure and R&D investment, the return to an invested Euro in R&D is, at the margin, greatest for firms localized to the capital of Sweden, compared to four other large regions. However, surprisingly Stockholm firms also have a lower propensity to cooperate with scientific, vertical and horisontal innovation systems. This may reflect limitations of popular survey-based information such as Community Innovation Survey data to capture spillover and the importance of informal collaborative relationships within regions.