Characteristics of foreign-owned firms in British manufacturing

This paper describes the characteristics of manufacturing establishments in Britain overthe period 1980 to 1996. Particular attention is paid to differences between plants ofdifferent ownership nationality. The findings suggest that establishments that are alwaysforeign-owned have significantly higher labour productivity than those that remainunder domestic ownership. In addition, labour productivity improves faster over timeand faster with age in foreign-owned establishments. The difference in labourproductivity is matched by an equivalent difference in levels of investment peremployee. Establishments that change ownership nationality do not seem to experiencevery large changes in labour productivity levels. The proportion of skilled workers inthe workplace, and wages for both skilled and operative workers are higher in foreignownedestablishments than domestic-owned, in line with differences in labourproductivity

Product market reform and innovation in the EU

European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth. European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth

Foreign ownership and productivity: new evidence from the service sector and the R&D lab

This paper examines the relationship between foreign ownership and productivity, paying particular attention to two issues neglected in the existing literature – the role of multinationals in service sectors and the importance of R&D activity conducted by foreign multinationals. We review existing theoretical and empirical work, which largely focuses on manufacturing, before presenting new evidence using establishment level data on production, service and R&D activity for the United Kingdom. We find that multinationals play an important role in service sectors and that entry of foreign multinationals by takeover is more prevalent than greenfield investment. We find that British multinationals have lower levels of labour productivity than foreign multinationals, but the difference is less stark in the service sector than in the production sector, and that British multinationals have lower levels of investment and intermediate use per employee. We also find that foreign-owned multinationals conduct a substantial amount of UK R&D. We discuss the implications of these and other findings for the policy debate on incentives to influence multinational firms’ location choices

Agglomeration, regional grants and firm location

We examine whether discretionary government grants influence the location ofnew plants, and how effective these incentives are in the presence of agglomeration andurbanisation externalities. We find evidence that regional industrial structure affects thelocation of new entrants. Firms in more agglomerated industries locate new plants near toothers in the same industry. Firms are also attracted to industrially diversified locations.Foreign multinationals locate new plants near to other foreign-owned plants in the sameindustry. Fiscal incentives in the form of grants are found to have some effect in attractingplants to specific geographic areas eligible for such aid. We examine whether discretionary government grants influence the location ofnew plants, and how effective these incentives are in the presence of agglomeration andurbanisation externalities. We find evidence that regional industrial structure affects thelocation of new entrants. Firms in more agglomerated industries locate new plants near toothers in the same industry. Firms are also attracted to industrially diversified locations.Foreign multinationals locate new plants near to other foreign-owned plants in the sameindustry. Fiscal incentives in the form of grants are found to have some effect in attractingplants to specific geographic areas eligible for such aid

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

Photoelectron microscopy and quantum yields of membrane phospholipids

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