Innovation drivers, value chains and the geography of multinational corporations in Europe
- *Department of Geography and Environment, London School of Economics, London, UK
- **Inter-American Development Bank, Washington, DC, USA & Universita' Roma Tre, Italy
- ***Dipartimento di Scienze Politiche e Sociali, Università di Pavia, Pavia, Italy
- ↵†Corresponding author: Riccardo Crescenzi, Department of Geography and Environment, London School of Economics, London, UK. email <r.crescenzi{at}lse.ac.uk>
- Received June 26, 2012.
- Accepted June 3, 2013.
Abstract
This paper investigates the geography of multinational corporations’ investments in the EU regions. The ‘traditional’ sources of location advantages (i.e. agglomeration economies, market access and labour market conditions) are considered together with innovation and socio-institutional drivers of investments, captured by means of regional ‘social filter’ conditions. This makes it possible to empirically assess the different role played by such advantages in the location decision of investments at different stages of the value chain and disentangle the differential role of national vs. regional factors. The empirical analysis covers the EU-25 regions and suggests that regional socio-economic conditions are crucially important for the location decisions of investments in the most sophisticated knowledge-intensive stages of the value chain.
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