With the emergence of global value chains (GVCs), production processes are increasingly fragmented and dispersed across different countries. Although many MNEs still exhibit an important ‘home bias’ in their global innovation activities, a growing number of firms have offshored R&D and...

We analyze strategic interaction in R&D internationalization decisions by two multinational firms competing both abroad and in their home markets and examine different incentives for foreign R&D faced by technology leaders and technology laggards. The model takes into account the impact of local...

Although an expanding literature on university-industry linkages has suggested that proximity to academia can increase the innovative performance of firms, the role of academic research in the R&D location choices by multinational firms has received surprisingly little attention. In this paper...

We develop and test a model of the simultaneous determination of global gross fixed capital investments by multinational firms. We integrate a model of multi-product firms choosing optimal manufacturing locations with a model of dynamic investment optimization. Firms adjust capital stocks in...

We combine economic and institutional theories of clustering in foreign entry location choice in an overarching social learning conceptualisation. Prospective entrants learn about the attractiveness of alternative locations by observing the entry choices of previous investors ("models"). We...

We develop and empirically test a model of foreign R&D investments that takes into account strategic interaction in R&D location decisions by multinational firms in the context of R&D spillovers and foreign technology sourcing strategies. In a two-country, two-firm model with cross investments,...