New insights on the role of location advantages in international innovation

Narula, Rajneesh and Santangelo, Grazia D. (2011). New insights on the role of location advantages in international innovation. UNU-MERIT.

Document type:
Report
Collection:
UNU-MERIT Working Papers

Metadata
Documents
Versions
Statistics
  • Attached Files (Some files may be inaccessible until you login with your UNU Collections credentials)
    Name Description MIMEType Size Downloads
    wp2011-045.pdf PDF application/pdf 205.23KB
  • Author Narula, Rajneesh
    Santangelo, Grazia D.
    Title New insights on the role of location advantages in international innovation
    Publication Date 2011
    Publisher UNU-MERIT
    Abstract This paper takes a closer look at the role of location advantages in the spatial distribution of MNE R&D activity. In doing so, we have returned to first principles by revisiting our understanding of L and O advantages and their interaction. We revisit the meaning of L advantages, and offer a succinct differentiation of L advantages. We emphasise the importance of institutions, and flesh out the concept of collocation L advantages, which play an important role at the industry and firm levels of analysis. Just because a country possesses certain L advantages when viewed at a macro-level, does not imply that these are available to all industries or all firms in that location without differential cost. When these are linked to the distinction between location-bound and non location-bound O advantages, and we distinguish between MNEs and subsidiaries it allows for a clearer understanding of the MNE's spatially distributed activities. These are discussed here in the context of R&D, which - in addition to the usual uncertainties faced by firms - must deal with the uncertainties associated with innovation. Although prior literature has sometimes framed the centralisation/decentralisation, spatial separation/collocation debates as a paradox facing firms, when viewed within the context of the cognitive limits to resources, the complexities of institutions, and the slow pace of the evolving specialisation of locations, these are in actuality trade-offs firms must make.
    Keyword FDI
    MNEs
    Eclectic paradigm
    Collocation
    Country specific advantages
    JEL F23
    L52
    O14
    O19
    Copyright Holder UNU-MERIT
    Copyright Year 2011
  • Versions
    Version Filter Type
  • Citation counts
    Google Scholar Search Google Scholar
    Access Statistics: 473 Abstract Views, 247 File Downloads  -  Detailed Statistics
    Created: Wed, 11 Dec 2013, 17:23:11 JST