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Multinational Enterprises and the Geographical Clustering of Innovation

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  • Ram Mudambi
  • Tim Swift

Abstract

Research on the geographic clustering of economic activity dates back to the early twentieth century. It is recognized that in spite of advances in transportation and communications, clustering remains most critical, and is consequently prevalent, in knowledge-intensive fields. Multinational enterprises (MNEs) that increasingly base their value creation and competitive advantage on knowledge-intensive activities are key participants in clusters, affecting both the nature and intertemporal evolution of local innovative activities. However, the role of MNEs in clusters remains under-researched. This paper traces the origins of research on geographic clusters, identifies the seminal contributions focusing on the role of MNEs, discusses potential problems inherent to this area of inquiry and develops an organizing framework for new research.

Suggested Citation

  • Ram Mudambi & Tim Swift, 2012. "Multinational Enterprises and the Geographical Clustering of Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 19(1), pages 1-21, January.
    • Handle: RePEc:taf:indinn:v:19:y:2012:i:1:p:1-21
    DOI: 10.1080/13662716.2012.649058
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    References listed on IDEAS

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    1. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
    2. Nadiri, M.I., 1993. "Innovations and Technological Spillovers," Working Papers 93-31, C.V. Starr Center for Applied Economics, New York University.
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    Cited by:

    1. Nils Grashof, 2019. "Firm-specific cluster effects - A meta-analysis," Bremen Papers on Economics & Innovation 1906, University of Bremen, Faculty of Business Studies and Economics.
    2. Nils Grashof, 2020. "Firm‐specific cluster effects: A meta‐analysis," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1237-1260, October.
    3. José Antonio Belso-Martínez & María José López-Sánchez & Rosario Mateu-García, 2018. "New MNE subsidiaries in old clusters: when, why, and how," Review of Managerial Science, Springer, vol. 12(2), pages 441-467, March.
    4. Mingrui He & Min Mei & Handan Zhang, 2024. "Evolutionary Stages and Paths of Innovation Networks in Industrial Clusters: Case Study of Nanchong Silk-Spinning Garment Industry Cluster (SSGIC)," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1703-1735, March.
    5. Schubert, Torben, 2021. "Internationalization, Product Innovation and the moderating Role of National Diversity in the Employment Base," Papers in Innovation Studies 2021/3, Lund University, CIRCLE - Centre for Innovation Research.
    6. Francisco Puig & Borja Portero & Miguel González-Loureiro, 2017. "Clustering strategy and development of subsidiaries in China," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(2), pages 221-243, June.
    7. Pengfei Li & Harald Bathelt, 2018. "Location strategy in cluster networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 967-989, October.
    8. David Edgington & Roger Hayter, 2013. "The In Situ Upgrading of Japanese Electronics Firms in Malaysian Industrial Clusters," Economic Geography, Clark University, vol. 89(3), pages 227-259, July.
    9. Lee, Eun Su & Liu, Wei & Yang, Jing Yu, 2023. "Neither developed nor emerging: Dual paths for outward FDI and home country innovation in emerged market MNCs," International Business Review, Elsevier, vol. 32(2).
    10. Torben Schubert, 2024. "Captive Offshoring, Innovation and Market Diffusion: Evidence from the Swedish Community Innovation Survey," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5650-5678, June.
    11. Ryan, Paul & Giblin, Majella & Andersson, Ulf & Clancy, Johanna, 2018. "Subsidiary knowledge creation in co-evolving contexts," International Business Review, Elsevier, vol. 27(5), pages 915-932.
    12. Zhang, Gongyi & Zhao, Shukuan & Xi, Yujuan & Liu, Na & Xu, Xiaobo, 2018. "Relating science and technology resources integration and polarization effect to innovation ability in emerging economies: An empirical study of Chinese enterprises," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 188-198.
    13. Giuliani, Elisa & Gorgoni, Sara & Günther, Christina & Rabellotti, Roberta, 2014. "Emerging versus advanced country MNEs investing in Europe: A typology of subsidiary global–local connections," International Business Review, Elsevier, vol. 23(4), pages 680-691.
    14. Namchul Shin & Kenneth L. Kraemer & Jason Dedrick, 2014. "Value capture in global production networks: evidence from the Taiwanese electronics industry," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 19(1), pages 74-88, January.

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