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Innovation in Multinational Firms and the Role of Geography

In: Innovation and the Multinational Firm: Perspectives on Foreign Subsidiaries and Host Locations

Author

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  • Alessandra Perri

    (Universita’ Ca’ Foscari Venezia)

Abstract

Chapter 1 discusses the interrelations between innovation and the MNC, reviews selected models of innovation in MNCs and analyzes the role geography plays in shaping the patterns of knowledge diffusion. Building on previous research, it suggests that the development of technological capabilities and the international expansion are mutual-reinforcing strategic paths. Moreover, despite recent views proposing that geography is becoming increasingly irrelevant, it contends that geographical proximity still plays a powerful role in determining economic activities and, more specifically, in influencing MNCs’ management of internal and external innovation networks. Using OECD data, it concludes by offering some insights into recent trends of R&D internationalization.

Suggested Citation

  • Alessandra Perri, 2015. "Innovation in Multinational Firms and the Role of Geography," Palgrave Macmillan Books, in: Innovation and the Multinational Firm: Perspectives on Foreign Subsidiaries and Host Locations, chapter 1, pages 9-33, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-55544-1_2
    DOI: 10.1057/9781137555441_2
    as

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