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The spatial distribution of foreign direct investment in R%D within host countries. An empirical examination of foreign subsidiaries in Spain

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  • Adelheid Holl
  • Ruth Rama

Abstract

We discuss the patterns of foreign direct investment in R%D within host countries and provide an empirical analysis for Spain by comparing foreign subsidiaries' R%D location patterns with that of domestic plants. We find that foreign subsidiaries' R%D is strongly concentrated in Madrid and Catalonia, the two largest Spanish regional agglomerations. Networked foreign subsidiaries involved in external technology sourcing still centralise to a greater extent their R%D activities in these leading regions. The concentration of foreign direct investment in R%D is significantly greater than that of domestic firms' R%D. The most technologically intensive foreign subsidiaries, however, are not attracted to Madrid, in spite of the alleged advantages of global cities in terms of openness and connectivity; but this is not a specificity of foreign subsidiaries as we observe a similar pattern for domestic firms.

Suggested Citation

  • Adelheid Holl & Ruth Rama, 2016. "The spatial distribution of foreign direct investment in R%D within host countries. An empirical examination of foreign subsidiaries in Spain," International Journal of Multinational Corporation Strategy, Inderscience Enterprises Ltd, vol. 1(1), pages 65-86.
    • Handle: RePEc:ids:ijmcst:v:1:y:2016:i:1:p:65-86
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    Cited by:

    1. Loles Añón Higón & Alfonso Díez-Minguela, 2021. "Location, Location, Location: Do Universities Matter for Foreign R&D?," Working Papers 2109, Department of Applied Economics II, Universidad de Valencia.
    2. Alberto Melane-Lavado & Agustín Álvarez-Herranz, 2020. "Cooperation Networks as a Driver of Sustainability-Oriented Innovation," Sustainability, MDPI, vol. 12(7), pages 1-26, April.

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