Geography Reference
In-Depth Information
countries, have invested in science parks (e.g., supplier parks,
partner ports) close to their major R&D location, to benefit from
local knowledge and/or established strategic research partner-
ships with top-universities. As reported by one ICT firm, future
opportunities for regional network creation are also seen in foster-
ing spin-outs or start-ups. Furthermore, MNEs can act as global
antennas opening up international networks and knowledge
inflows for SMEs in the region. For instance, an ICT firm reported
that involving regional SMEs (and potential customers) in inno-
vative product developments, such as technology or service
delivery platforms, would particularly enable the local system to
access global markets.
From the region to the MNE:
As MNEs are not necessarily
engaged in regional networks in order to exploit spatial knowl-
edge flows, other institutions with a specific regional mandate
need be in place to support such processes. Many of the inter-
viewed MNEs have taken part in regional network initiatives,
which broadly fall in two categories: (1) activities financing R&D
collaborations among regional actors, which include funding
streams from national governments or the EU, and (2) activities
aimed at creating networks across regional actors with the spe-
cific target of exchanging knowledge. In the UK these include,
for example, sectoral
Knowledge Transfer Networks
(where
Regional Development Agencies have a strong involvement).
Similarly, some of the firms located in Germany were, or are,
actively involved in the Clusters of Excellence initiative, funded by
the German Federal Ministry of Education and Research.
Source:
Adapted from Iammarino et al. 2011.
are subject to change such that the system never reaches a 'steady state',
it is possible to identify a clear logic which is driving global knowledge
and technology flows. It has been argued that MNE networks for inno-
vation turns out to be a function of a
geographical hierarchy
of clusters
and regional centres (Cantwell and Iammarino 1998, 2001, 2003). In
particular, these networks depend on the strategic importance of the host
location and of the innovative dynamism of local competitors, suppliers
and institutions (see Box 4.3). The sectoral composition of technological
strengths is seen to differ across regions, while the technological speciali-
zation of foreign affiliates depends upon the rank of the location in the
