Geography Reference
In-Depth Information
as knowledge sources, and the location behaviour of MNEs. Chapter 7
shows how current competitive advantages are increasingly associated
with cities or city-regions being the major open centres of knowledge and
exchanges. The examples provided illustrate the difference between simple
'connectedness', defined in terms of the architecture of transport and
communications infrastructure, and the much broader concept of 'con-
nectivity', which is a behavioural concept incorporating the capability of
individuals, firms, organizations and institutions to interact and engage
across different locations and within networks. Connectivity emphasizes
the substantial degree of two-way inward and outward openness of certain
regions and also the firms embedded in these regions, in terms of many
behavioural and organizational dimensions of knowledge connectedness.
As we demonstrate in this chapter, many features of the current stage of
globalization are seen to be making the world more uneven in a variety
of different ways, whereby global networks and local agglomerations can
act as complementary forces strengthening each other in determining the
growth and productivity 'spikes' of the world economy.
Finally, Chapter 8 focuses on new trends emerging with respect to the
combined importance of MNEs and developing and transition economies,
with particular reference to the BRIICS countries. The increasing role in
R&D played by the foreign affiliates of MNEs, on the one hand, and the
growing attractiveness of developing economies as locations for MNE
foreign affiliates, on the other hand, have sharply accelerated their pace
of development and integration in the global economy in the last two
decades. These trends provide significant opportunities for developing
economies to improve and upgrade their competencies and capabilities,
and their capacity to accumulate knowledge and technological assets via
multinational conduits. However, agglomeration phenomena and sub-
national differentials are also increasing at an impressive speed than was
previously anticipated. The major cities in these emerging economies are
expected to play an ever more prominent role in the global city rankings,
and their surrounding regions will progressively acquire the status of core
regional locations in the global economy. The distinction between winner
and losers, both within and across national boundaries, is therefore likely
to be further exacerbated by these new drifts.
NOTE
1. See Ietto
-
Gillies (2005) for a comprehensive review of FDI forms and alternative
modalities of MNE business operations.
