Technological clusters and multinational enterprise R&D strategy

Abstract

Economic clusters are global centers of excellence in particular industries or technologies. They consist of interlinked companies, specialized suppliers, support services, and relevant institutional actors in a specific field. Multinational enterprise (MNE) R&D strategy with regard to economic clusters is impacted by two contradictory forces. MNEs locating their R&D activities within economic clusters can benefit by availing of specialized resources and by capturing location-specific tacit knowledge. However, the risks of knowledge leakage can lead to adverse selection whereby clusters attract underperforming firms that have much to gain and little to lose. Further, general disagreement exists on the measurement of performance within economic clusters. We review the literature, assess the evidence, and suggest areas for productive future research.

Citation

Mudambi, R. and Swift, T. (2010), "Technological clusters and multinational enterprise R&D strategy", Timothy, D., Torben, P. and Laszlo, T. (Ed.) The Past, Present and Future of International Business & Management (Advances in International Management, Vol. 23), Emerald Group Publishing Limited, Leeds, pp. 461-478. https://doi.org/10.1108/S1571-5027(2010)00000230025