Geography Reference
In-Depth Information
the Penrosian and the Resource-Based View (RBV) of the firm, and the
economics of technological change and evolutionary views. We next con-
sidered the issues of technological competence, capabilities and learning,
and these were discussed also taking into account both the nature and the
dynamics of technological progress.
The chapter then examined the meso-level of the analysis of the sources
of innovation, focussing initially on sectoral patterns of innovation, as
well as the issues raised by firm heterogeneity, industrial dynamics and
diversity, and technological regimes. These are in fact the foundations for
understanding the nature of systems of innovation, defined with respect to
their geographical, sectoral and technological dimensions.
These two levels of analysis have helped us to provide the reader with
the basic building blocks for understanding the phenomenon of the
globalization of innovation and for interpreting the evolution of MNEs
production and innovation networks. Indeed, the geography of knowl-
edge sources is crucial for explaining the locational and organizational
behaviour of what are nowadays the most common types of MNEs as
categorized in the Behrman-Dunning classification of Chapter 2. These
most common types of MNEs are those which are seeking specific tech-
nical and non-technical capabilities, expertise or skills (i.e.
specific-
and
strategic- asset seeking
MNEs), and/or seeking optimal forms of integra-
tion and restructuring of both production and innovation operations (i.e.
scale and scope economies seeking
MNEs). Locational advantages change
over time, and these changes relate to technology and MNE organization
and behaviour. They result in, and are also the result of, a mix of sectoral
and systemic features which bring together the technological, organiza-
tional and relational capabilities for interactive learning. As we will see in
the next chapter, an understanding of these features at a regional level can
greatly help explain the dynamics both of firms - and particularly MNEs
- and also the spatial-industrial configurations of regions that we observe.
NOTES
1. See the classification in Section 2.2 in Chapter 2.
2. The contractual paradigm that developed from the seminal work of Coase and
Williamson pushed the argument even further forward, defining the firm as a 'nexus of
contracts'. Jensen and Meckling (1976) argue that 'a firm is the nexus of a set of con-
tracting relationships among individuals' and that 'it makes little or no sense to try to
distinguish those [contractual relationships] which are 'inside' the firm from those . . .
that are outside of it' (Jensen and Meckling 1976, p. 215).
3.
This is also clearly acknowledged by Rugman (2000), who instead highlights the differ-
ent normative premises of modern resource-based views of strategic management and
Penrose's work.
