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Tight Clusters or Loose Networks? The Critical Role of Inward Foreign Direct Investment in Cluster Creation

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  • Majella Giblin
  • Paul Ryan

Abstract

Giblin M. and Ryan P. Tight clusters or loose networks? The critical role of inward foreign direct investment in cluster creation, Regional Studies . The purpose of this paper is to investigate the role of inward foreign direct investment in instigating a clustering process. In particular, the study examines the situation in which foreign direct investment is initially attracted to a region as a result of public policy initiatives rather than the existence of sophisticated local capabilities. Under these circumstances, the presence of large foreign-owned multinational corporations is shown to result in local knowledge transfers and regional reputation effects. These effects give rise to a clustering process, which contrary to other perspectives, shows that external economies can be captured locally from foreign direct investment. Giblin M. et Ryan P. Des grappes entass�es ou de vagues r�seaux? Le rôle critique de l'investissement direct �tranger dans la cr�ation des grappes, Regional Studies . Cet article cherche à examiner le rôle de l'investissement direct �tranger dans la cr�ation des grappes. En particulier, l'�tude examine la situation où l'investissement direct �tranger se dirige dans un premier temps vers une r�gion particulière suite aux actions gouvernementales plutôt qu'en r�ponse à la pr�sence des capacit�s locales �volu�es. Dans cette optique, on d�montre que la pr�sence des grandes soci�t�s multinationales à capital majoritaire �tranger entraîne des effets quant aux transferts de la connaissance locale et à l'image de marque de la r�gion. Ces effets suscitent le regroupement qui, contrairement à d'autres points de vue, montre que l'on peut capter sur le plan local des �conomies externes de l'investissement direct �tranger. Grappes industrielles Investissement direct �tranger Soci�t�s multinationales R�gions Retomb�es Economies externes Giblin M. und Ryan P. Enge Clusters oder lose Netzwerke? Die wichtige Rolle der eintreffenden ausländischen Direktinvestitionen bei der Bildung von Clustern, Regional Studies . In diesem Beitrag wird die Rolle der eintreffenden ausländischen Direktinvestitionen bei der Auslösung eines Clusterprozesses untersucht. Insbesondere wird die Situation untersucht, in der die ausländischen Direktinvestitionen anfangs nicht wegen des Vorhandenseins fortgeschrittener lokaler Kapazitäten, sondern aufgrund von öffentlichen politischen Initiativen angezogen werden. Unter diesen Umständen führt die Präsenz von großen multinationalen Konzernen im Auslandsbesitz zu lokalen Wissenstransfers und Auswirkungen auf den Ruf der Region. Diese Auswirkungen verursachen einen Clusterprozess, was -- im Gegensatz zu anderen Perspektiven -- zeigt, dass externe Ökonomien durch ausländische Direktinvestitionen lokal erfasst werden können. Branchencluster Ausländische Direktinvestitionen Multinationale Konzerne Regionen Übertragungen Externe Ökonomien Giblin M. y Ryan P. ¿Aglomeraciones estrechas o redes sueltas? El importante papel de la inversión extranjera directa interna en la creación de aglomeraciones, Regional Studies . La finalidad de este art�culo es investigar el papel de la inversión extranjera directa interna al instigar un proceso de aglomeración. En este estudio analizamos en particular la situación en la que la inversión extranjera directa no es atra�da inicialmente a una región por la existencia de capacidades locales sofisticadas sino como resultado de las iniciativas pol�ticas de carácter público. En estas circunstancias, se demuestra que la presencia de grandes corporaciones multinacionales de propiedad extranjera crea transferencias de conocimiento local y tiene repercusiones en la reputación regional. Estos efectos dan lugar a un proceso de aglomeración, lo que, a diferencia de otras perspectivas, muestra que las econom�as externas pueden ser captadas localmente por inversión extranjera directa. Aglomeraciones industriales Inversión directa extranjera Corporaciones multinacionales Regiones Desbordamientos Econom�as externas

Suggested Citation

  • Majella Giblin & Paul Ryan, 2012. "Tight Clusters or Loose Networks? The Critical Role of Inward Foreign Direct Investment in Cluster Creation," Regional Studies, Taylor & Francis Journals, vol. 46(2), pages 245-258, April.
  • Handle: RePEc:taf:regstd:v:46:y:2012:i:2:p:245-258
    DOI: 10.1080/00343404.2010.497137
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    1. Best, Michael, 2001. "The New Competitive Advantage: The Renewal of American Industry," OUP Catalogue, Oxford University Press, number 9780198297451, Decembrie.
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    3. Edward Gilmore & Ulf Andersson & Noushan Memar, . "How subsidiaries influence innovation in the MNE value chain," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    4. 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.
    5. Gary Gereffi & Stacey Frederick & Penny Bamber, . "Diverse paths of upgrading in high-tech manufacturing: Costa Rica in the electronics and medical devices global value chains," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    6. Svante Andersson & Eva Berggren, 2016. "Born global or local? Factors influencing the internationalization of university spin-offs—the case of Halmstad University [Born Global oder Born Local: Was beinflüsst und erleichtert die Internati," Journal of International Entrepreneurship, Springer, vol. 14(3), pages 296-322, September.
    7. 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.
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    11. Barrett, Gillian & Tsekouras, George, 2022. "A tango with a gorilla: An exploration of the microfoundations of open innovation partnerships between young innovative companies and multi-national enterprises," Technovation, Elsevier, vol. 117(C).

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