Document Type


Publication Date


Journal / Book Title

Journal of Technology Management,


This paper provides an overview of the relationship between multinational corporations (MNCs) and local economic systems. It examines the implications of a decentralisation of innovative activity within MNCs for their interaction with local networks. It is shown that this interaction depends upon the type of cluster, whether a general centre of excellence or a specialised centre. These two principal kinds of cluster are associated with different structures of local knowledge spillovers between firms. Localised science-technology linkages offer a further category of interaction. It is shown how locational hierarchies may affect the locational strategies of MNCs when they disperse innovative activity.



Published Citation

Cantwell, J., & Zhang, Y. (2011). Innovation and location in the multinational firm. International Journal of Technology Management, 54(1), 116-132.