We analyse 446 location decisions of foreign affiliates in the R&D sector incorporated in the European Union over 1999-2006. Our results suggest that on average, the location probability increases with the size of demand, agglomeration economies, low production cost, R&D intensity, flexibility...

This paper examines the effects of the internationalisation of firms via foreign direct investment and trade on their innovation and productivity performance. Our econometric results suggest that foreign affiliates and domestic exporters were more likely to invest in innovation and furthermore...

This paper examines the causal link between foreign investment and firm performance in six small open economies in the European Union. Specifically, using micro data for manufacturing and services over the period 2001–2009, we analyse the effects of foreign mergers and acquisitions on labour...