When does International Knowledge Connectivity of Global Cities Attract R&D Investments? The role of Concentrated Ownership through Organizational Pipelines

Abstract:We argue that the degree of concentrated ownership of international knowledge connections of a city in the hands of a small number of MNEs reduces the potential for knowledge spillovers and has a negative influence on the attractiveness of a city for new R&D investments. Ownership concentration in international knowledge connections reduces the positive influence of two complementary characteristics of international knowledge connectivity: the international connectedness (“depth”) and the geographical diversity (“breadth”) of the cities’ international knowledge networks. Our analysis of the location decisions for 3,235 new cross-border R&D investments made by 1,599 firms distributed across 71 global cities (2003-2016) provides support for these hypotheses.

Publication year:2024

Keywords:business, economics, planning

Accessibility:Embargoed

Review status:Peer-reviewed