Geography Reference
In-Depth Information
topic has a far more modest scope, we hope it can be considered as a small
step forward in that direction.
For this purpose, a clarification regarding the interpretative lenses
adopted in this topic is necessary. Evolutionary perspectives have found
extensive applications both in the theory of the MNE and in the economic
geography arena. This underlies our choice to adopt such a perspective
here, particularly in considering the interdependence between the micro
level of the firm, and the meso level of the spatial system. This choice
should not be taken as implying a claim that the evolutionary approach
to analysis is uniquely or universally superior, but rather that we make
use of it because of its particular strengths in interpreting change and
evolution. On the other hand, we make use of many concepts which have
been developed by different theoretical and conceptual streams, some of
which have even been blended. For example, it is hard, if not impossible,
to accredit the introduction of the term 'technological competence' to any
specific research line, and to determine whether and to what extent this
differs from that of 'capability' in the general literature. Yet, to discuss
the parenthood of terms is not our aim here, but rather to indicate the
building blocks of an analytical framework for interpreting the relation-
ship between space and innovation sources, and their relevance for MNE
location and investment choices and evolution.
1.2
THE CHANGING GLOBAL CONTEXT
1.2.1
The Earth, a Round Planet with a Bumpy Surface
Our integrative view features the MNE-knowledge-space nexus in a
context of increasing globalization of the world economy. Could this topic
have been written, or would it have been applicable, prior to the end of the
1980s? As we will see, we think not, because the difference between then
and now has been the astounding speed and scale of globalization in the
last two decades which has transformed all aspects of multinationality and
of being multinational.
The notion of economic globalization, in the sense of the increasing eco-
nomic openness of national economies and the increasing integration of
the world economy, is now widely discussed and well established (Box 1.2).
Scholars, governments, international organizations, and individuals have
attempted to assess the changes that have occurred as a consequence of
an ever increasingly globalized economy and society. In geographical or
spatial terms, we may reduce discussions on globalization to two broad
questions: is distance becoming less important? and, are different places in
