KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
The Global-Local Interplay of MNE and Non-MNE Firms
() and Hans Lööf
Abstract: During a sequence of decades we can observe a co-evolution
of globalization through network formation of multinational (MNE) firms and
concentration in specific places due to agglomerative forces. First,
innovation ideas arrive at a faster speed to firms with past experience of
innovation activities and with established export market contacts. Second,
innovativeness is strongly dependent on corporate and ownership structure.
Third, the returns to innovation efforts are positively influenced by
firms’ capability to exploit extended markets. All these phenomena can be
theoretically explained by MNE’s capacity to coordinate global supply
chains and orchestrate localized R&D activities and knowledge flows. The
paper illuminates how attributes of MNEs and non-MNEs differ, and how these
differences affect the productivity and export intensity. It also shows how
agglomeration economies affect MNEs and non-MNEs.
Keywords: globalization; agglomeration; corporate ownership structure; innovation; exports; productivity; (follow links to similar papers)
JEL-Codes: C16; F14; L25; O33; R12; R30; (follow links to similar papers)
42 pages, August 26, 2009
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