We use a Hotelling-type model with innovation in order to explore some of the main guidelines proposed by M. Porter (1991) in what refers to competitive advantage by differentiation and innovation. We find that Porter's remark about the fundamental importance of innovation as the origin of...

In this paper we examine foreign location choices of the top 100 US multinational corporations (MNCs) in 1980 and 2000. We first ask whether there has been a change in MNC foreign location choice in this two-decade period. Second, we explore the underlying reasons of location change by focusing...