'Multinationals and Regional Development'

Biosciences NG08
Lectures Talks and Workshops, Life and Environmental Sciences, Research
Wednesday 17th February 2016 (16:00-17:00)
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Part of the School Seminar Series

Speaker: Dr Riccardo Crescenzi (London School of Economics)

Host: Emmanouil Tranos


Multinational Enterprises (MNEs) are key ‘tectonic forces’, shaping the ‘mountains’ in a far-from-flat world economic geography. In 2010, MNEs generated value added for approximately US$16 trillion accounting for more than a quarter of world GDP (UNCTAD, 2012). The progressive expansion of firms from emerging economies into multinational enterprises is unprecedented. Outflows of FDIs from developing economies reached the record level of $426 billion in 2012, corresponding to 31% of global outflows, up from 16% in 2007 (UNCTAD, 2013). 

However, very little is known on both the location drivers of MNE investments and on their ultimate impacts on the host regions and cities.  What characteristics make cities and regions attractive to Foreign Investment? How do attraction factors vary along the Value Chain? How do Foreign Investments impact innovation and economic activity in their host cities and regions? 

This talk will discuss how geography, local institutions and MNE heterogeneity - often overlooked in ‘traditional’ macro-level studies – can shed new light on the inter-connection between location motives and impacts. The talk will draw on examples from the UK, Europe and Emerging Countries and will discuss how new research in this field can provide policy-makers at all levels with new tools to promote innovation, employment and economic recovery after the economic crisis.

Key References:

Crescenzi R., Pietrobelli C. & Rabellotti R. “Innovation Drivers, Value Chains and the Geography of Multinational Corporations in Europe”, Journal of Economic Geography, 14 (6), 1053-1086, 2014

Crescenzi, R., Gagliardi, L., Iammarino, S., "Foreign Multinationals and domestic innovation: intra-industry effects and firm heterogeneity", Research Policy, 44, 596–609, 2015.

Crescenzi R., Pietrobelli C. & Rabellotti R. “Regional strategic assets and the location strategies of emerging countries’ multinationals in Europe”, European Planning Studies. (In Press - http://dx.doi.org/10.1080/09654313.2015.1129395 )