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Optimizing the location of R&D and production activities: trends in the automotive Industry

Author

Listed:
  • Ana Colovic

    (Pôle Entrepreneuriat et Innovation - Rouen Business School - Rouen Business School)

  • Ulrike Mayrhofer

    (Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon)

Abstract

This article analyses the location strategies pursued by multinational corporations. The empirical study is based on automobile MNCs of Triad nations, which need to optimize the location of their activities in order to remain competitive. The main objective of the paper is to determine to which extent automotive MNCs are globalized or regionalized. The analysis focuses on production and R&D activities, which play a strategic role in the global value chain of companies. The arguments presented show that, whilst most car manufacturers used to concentrate a large part of production and R&D activities in their country of origin or home region, they currently accelerate the geographic diversification of investments. Thus, the importance of production and, to a lesser extent, of R&D facilities based abroad is constantly growing, especially in emerging markets, which can be considered particularly attractive territories for MNCs. In a context in which the attractiveness of countries and regions appears to be in a state of constant change, the present study contributes to a better understanding of the location choices made by automotive MNCs.

Suggested Citation

  • Ana Colovic & Ulrike Mayrhofer, 2011. "Optimizing the location of R&D and production activities: trends in the automotive Industry," Post-Print hal-00824669, HAL.
    • Handle: RePEc:hal:journl:hal-00824669
    DOI: 10.1080/09654313.2011.586175
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    Citations

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    Cited by:

    1. Christopher Melin, 2013. "L'intégration logistique au sein d'une chaîne multi-acteurs : le cas de Renault Trucks," Post-Print halshs-00879437, HAL.
    2. Ludivine Chalençon, 2012. "Stratégies de localisation et Fusions-Acquisitions : une Etude Exploratoire," Post-Print halshs-00721248, HAL.
    3. Rotolo, Daniele & Camerani, Roberto & Grassano, Nicola & Martin, Ben R., 2022. "Why do firms publish? A systematic literature review and a conceptual framework," Research Policy, Elsevier, vol. 51(10).
    4. Ottó Csíki & Réka Horváth & Levente Szász, 2019. "A Study of Regional-Level Location Factors of Car Manufacturing Companies in the EU," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 13-39, December.
    5. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    6. Lusine Arzumanyan & Ulrike Mayrhofer & Christopher Melin, 2011. "Coordinating R&D activities in multinational companies: towards new tools and practices?," Post-Print halshs-00690220, HAL.
    7. Marius Chofor Asaba & Fabian Duffner & Florian Frieden & Jens Leker & Stephan von Delft, 2022. "Location choice for large‐scale battery manufacturing plants: Exploring the role of clean energy, costs, and knowledge on location decisions in Europe," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1514-1527, August.
    8. Ren Lu & Torger Reve & Jing Huang & Ze Jian & Mei Chen, 2018. "A Literature Review Of Cluster Theory: Are Relations Among Clusters Important?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 1201-1220, September.

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