A New FDI Potential Index: Design and Application to the EU Regions

Maza, Adolfo; Villaverde, José

doi:10.1080/09654313.2015.1020771

Cited by 17 publications

(15 citation statements)

References 30 publications

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“…The analysis shows that EMNEs attach great importance to both regional and national location factors (Maza and Villaverde, 2015). In the UK, France, Germany,…”

Section: Discussionmentioning

confidence: 99%

Regional strategic assets and the location strategies of emerging countries’ multinationals in Europe

Crescenzi

Pietrobelli

Rabellotti

2016

European Planning Studies

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This paper explores the location strategies of Multinational Enterprises (MNEs) from emerging countries (EMNEs) in search for regional strategic assets. The analysis is based on a systematic comparison between EMNEs and multinationals from advanced countries (AMNEs) in order to unveil similarities and differences between these two major sources of foreign investments into the regions of the European Union. The empirical results suggest that EMNEs follow a distinct logic in their location strategies because they are attracted by the availability of technological competences only when their subsidiaries pursue more sophisticated and technology-intensive activities. Conversely EMNEs share some behavioural similarities with AMNEs in their response to the spatial agglomeration of investments. The paper is organized as follows. The next section reviews the literature dealing with the location of MNEs, introducing the determinants analysed in the empirical analysis with special reference to the expected behavioural differences between AMNEs and EMNEs.Section 3 introduces the empirical strategy and the dataset. The empirical results are presented in Section 4. Section 5 concludes with some policy considerations. A FRAMEWORK FOR COMPARATIVE ANALYSIS: MNEs AND THEIR LOCATION DRIVERSThere is a widespread consensus in the literature that the understanding of the location behavior of MNEs is still underdeveloped. Referring to the Ownership-LocationInternalization (OLI) paradigm developed by Dunning (1977), the literature has dealt widely with the questions related to the why a firm becomes a multinational (O) and how it carries out its international adventure (I) but so far the discussion about where it goes to internationalize its activities (L) has remained rather fuzzy (Iammarino and McCann, 2013;McCann and Mudambi, 2005).

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“…The analysis shows that EMNEs attach great importance to both regional and national location factors (Maza and Villaverde, 2015). In the UK, France, Germany,…”

Section: Discussionmentioning

confidence: 99%

Regional strategic assets and the location strategies of emerging countries’ multinationals in Europe

Crescenzi

Pietrobelli

Rabellotti

2016

European Planning Studies

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“…The approach developed in this paper permits the IPI in its current form to be readily used in practice or research without invalidating other indices such as UNCTAD’s FDI Attraction Index and FDI Potential Index or the FDI Potential Index proposed by Maza and Villaverde (2015). IPI serves as an important instrument that combines different elements of investment promotion to evaluate the coherence and intensity of promotional activities of places.…”

Section: Discussionmentioning

confidence: 99%

Intensity of foreign investment promotion and development levels in Central–Eastern European regions

Capik

2020

JPMD

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Purpose Investment promotion is gaining in popularity, yet its relationship with regional development remains unclear and under-investigated. The purpose of this paper is to combine place marketing and regional development concepts to explore investment promotion in the Czech, Polish and Slovak regions. It identifies elements of best practice and investigates to what extent these are used in foreign direct investment promotion conducted by regional authorities. Organisation- and implementation-related elements are studied. The discussion aims to answer the question of how systematic Central–Eastern European regional investment promotion is, and what are the factors determining regions’ involvement in, and the extent of, promotion activities. Design/methodology/approach Discussion is based on an original survey of Central–Eastern European (CEE) regional authorities' investment promotion. The paper develops a measurement of regional authorities’ engagement in investment promotion – an investment promotion index (IPI) and using non-parametric, two-tailed Spearmans correlation test investigates the relationship between IPI and socio-economic conditions in the regions. Kruskal-Wallis, a non-parametric test of difference is used to investigate statistical significance of differences in mean values between the three countries. Findings The analysis provides early insights into the relationship between regional development and investment attraction – the main theoretical contribution of the paper. Diverse levels of engagement in promotion are not influenced by the staple competitiveness factors of gross domestic product growth rates or foreign direct investment stock. Instead, it is conditioned by labour market situation in the countries studied. Originality/value Investment promotion relationship to regional development remains under-explored. The main focus of the analysis offered is the varying levels of CEE regional authorities’ involvement in investment promotion and its relationship to the socio-economic conditions prevailing in the regions. Exploring this relationship, the paper provides original contribution in the following two aspects: it establishes a systematic way of measuring regional authorities’ engagement with investment promotion; and it links the level of investment promotion to wider development of the regions.

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“…The location of foreign affiliates has been recurrently studied (Basile et al, 2008;Cantwell & Piscitello, 2005;Crozet et al, 2004;Villaverde & Maza, 2015). Following the internationalization of R&D (Dunning & Lundan, 2008;OECD, 2008), an expanding literature has focused on the determinants of foreign R&D location (Belderbos et al, 2014(Belderbos et al, , 2017Shimizutani & Todo, 2008;Siedschlag et al, 2013).…”

Section: The Location Of Foreign Randd Activitiesmentioning

confidence: 99%

Do universities matter for the location of foreign R&D?

Higón

Díez‐Minguela

2021

BRQ Business Research Quarterly

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This article explores the extent to which the regional higher education system (HES) influences the location of foreign research and development (R&D). To do so, we use a dataset with information on the location choices of new foreign R&D establishments within Spain from 2005 to 2013. Similarly, we use a multiple measure of the three university missions, distinguishing between research capacity training, scientific research, and technology transfer. We find that the probability of a foreign R&D establishment being located in a region is positively affected by the strength of the region’s HES missions, and more specifically by the quality of its scientific research, while its research training capacity and knowledge transfer activities do not seem to play a significant role. Moreover, the strength of the research mission has a positive influence on the location choice of foreign units conducting research activities but is weak to explain the location of those performing development activities. JEL CLASSIFICATION F21; F23; O32

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A New FDI Potential Index: Design and Application to the EU Regions

Cited by 17 publications

References 30 publications

Regional strategic assets and the location strategies of emerging countries’ multinationals in Europe

Regional strategic assets and the location strategies of emerging countries’ multinationals in Europe

Intensity of foreign investment promotion and development levels in Central–Eastern European regions

Do universities matter for the location of foreign R&D?

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