Foreign Investment, Multinationals and Innovation in advanced and emerging economies

Session organizers:

Riccardo Crescenzi (r.crescenzi@lse.ac.uk), Alexander Jaax (a.jaax@lse.ac.uk)


A growing number of contributions highlight that there is no such thing as “splendid isolation” with regards to innovation. In order to maximize their innovative output and economic development potential cities and regions cannot rely exclusively on local knowledge assets, but should benefit from a combination of “local buzz” and “global pipelines” or, more generally, global networks. A pivotal role in this respect is attributed to foreign investment (FDI) and multinational enterprises (MNEs) that tap into pools of knowledge outside their place of origin, generating multidirectional flows of capital, labour and knowledge between places, with potential contributions to local and regional innovation and development.

Policy makers in virtually all countries and regions have adopted a variety of measures and incentives to attract MNEs in order to leverage these potential benefits. This special session aims to bring together scholars conducting research on the linkages between regional innovation and FDI and MNEs in advanced and emerging economies.  We particularly welcome submissions related to the following areas:

  • Location behaviour and strategies
  • Local innovation impacts
  • New methodological approaches to the measurement of local impacts
  • The relevance of entry mode (greenfield vs. M&A) and business function of subsidiaries
  • The link between FDI and the mobility of inventors and highly skilled workers
  • Innovation policies targeting FDI in R&D-intensive activities

This session is sponsored by the Multinationals, Institutions and Innovation in Europe (MASSIVE) Project funded by the European Research Council (ERC).

A selection of the participating authors will be invited to contribute to the new LSE High-Impact Blog GILD ‘Global Investments Local Development’ and to participate in other activities of the project.