Investing in Localized Relationships with Universities: What are the Benefits for R&D Subsidiaries of Multinational Enterprises?

Abstract:     
In spite of a long-standing interest in the distribution of knowledge spillovers from university research, there is only limited theoretical understanding of if and when opportunities to interact with a research university constitute a significant force of attraction for globally mobile investment in R&D. Based on an empirical investigation of the benefits of interaction with universities, this paper proposes an analytical framework and four ideal types of strategy for localised collaboration between R&D subsidiaries and universities. This taxonomy, which largely transcends industry sectors, and the illustrative cases presented in this paper provide insights into the potential scope for localised university-industry interaction from the perspective of multinational enterprises. By connecting the empirical results to the question whether these benefits are significant enough to enhance a region's attractiveness as a location for R&D, we are able to develop a better understanding of the alternative strategies for policymakers and university leaders interested in stimulating such linkages.

Keywords: Knowledge spillovers, multinational enterprises, university-industry interaction, localisation of R&D

Accepted Paper Series