Multinationals and intra-regional innovation concentration

Pardy, Martina (2025) Multinationals and intra-regional innovation concentration. Research Policy, 54 (6). ISSN 0048-7333

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Abstract

This article examines the extent to which the presence of multinational enterprises (MNEs) influences the concentration of innovation among patenting firms within US states from 1976 to 2010. Merging patent and regional socioeconomic data, this study explores the effects within 50 US states over more than three decades using Ordinary-Least-Square and Instrumental Variable estimations. It shows that MNEs significantly contribute to the concentration of patenting activity, an effect predominantly driven by domestic-owned MNEs. The impact differs across space: states with a higher share of MNEs experience a sharper increase in patenting concentration. Crucially, it is the non-MNE firms that feel the squeeze the most, with those in the middle of the patenting hierarchy producing fewer patents when domestic MNEs ramp up their activity. This suggests that economic globalisation, while enhancing innovation opportunities for some, reinforces competitive pressures and barriers for others. These findings offer a new perspective on the forces shaping regional innovation dynamics, highlighting the role of MNEs in both amplifying innovation gains and exacerbating disparities in knowledge production.

Item Type:	Article
Additional Information:	© 2025 The Author(s)
Divisions:	Geography and Environment Middle East Centre International Inequalities Institute
Subjects:	H Social Sciences H Social Sciences > HB Economic Theory J Political Science
JEL classification:	F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O34 - Intellectual Property Rights: National and International Issues R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes
Date Deposited:	24 Apr 2025 13:33
Last Modified:	29 May 2025 23:56
URI:	http://eprints.lse.ac.uk/id/eprint/127983

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