Decision-making Power in Foreign Subsidiaries and Its Effect on Financial Constraints: An Analysis for Selected European Transition Economies on the Basis of the IWH FDI Micro Database 2013
Andrea Gauselmann, Felix Noth
Eastern European Economics,
No. 6,
2016
Abstract
This article analyzes whether the distribution of decision-making power between the headquarters and foreign subsidiaries of multinational enterprises (MNEs) affects the foreign affiliates’ financial constraints. The findings show that not much decision-making power has as yet been moved from headquarters to foreign subsidiaries in European post-transition economies. The high concentration of decision-making power within the MNE’s subsidiary points toward higher financial constraints. However, a nonlinear effect is found, which suggests that financial constraints within the subsidiary only increase with more decision-making power when the power granted to the subsidiary is at a low level. For subsidiaries that already have autonomy in decision-making, granting more power in this regard has no effect on financial constraints.
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The Importance of Localized Related Variety for International Diversification of Corporate Technology
Eva Dettmann, Iciar Dominguez Lacasa, Jutta Günther, Björn Jindra
Regional Studies,
No. 10,
2016
Abstract
Internationalization of research and development has increased substantially in recent years. This paper analyses the determinants of spatial distribution of foreign technological activities across 96 regions in Germany. It identifies foreign technological activities by applying the cross-border ownership concept to patent applications. The main proposition is that regions with higher related variety of technological activities between sectors attract more foreign technological activities. The estimations show that this is the case in regions characterized by a high overall technological strength. This suggests that related variety facilitates technological diversifications of foreign corporations in regions at the top of the geographic hierarchy.
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Post-transition Regions as Locations for Foreign Direct Investment of Multinational Enterprises
Andrea Gauselmann
Hochschulschrift, Online-Publikation,
2014
Abstract
Multinational enterprises invest abroad to tap into location-specific advantages and to enhance their own competitiveness. At the same time, they increase productivity and industrial up-grading in the region of location and can be considered agents of technological and economic development. The aim of the thesis is to contribute to current research by investigating, which determinants and motives influence foreign investors to locate in European post-transition economies, how they appraise the quality of location factors on-site and under which conditions a knowledge and technology transfer takes place between the foreign owned firm and domestic firms, thereby leading to a better understanding of what is the impact and benefit of foreign investment in these regions.
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Im Fokus: Veränderungen im Städtesystem Russlands: Fortdauernde Tendenz zur Konzentration
Albrecht Kauffmann
Wirtschaft im Wandel,
No. 1,
2014
Abstract
Nach dem Ende der kommunistischen Herrschaft in Russland haben der darauf folgende Transformationsschock und die durch ihn in Gang gesetzten Marktprozesse Veränderungen im Städtesystem bewirkt. Anhand eigens aufbereiteter Daten der amtlichen russischen Städtestatistik geht der Beitrag diesen Veränderungen nach. Wichtigste Erkenntnisse sind die Erhöhung der Konzentration der urbanen Bevölkerung und die Verstärkung der Gegensätze zwischen urbanen Kernen und peripheren Räumen. Für die Zeit etwa ab dem Jahr 2000 darf vermutet werden, dass marktwirtschaftliche Prozesse die Veränderungen im Städtesystem beeinflussen. Hierzu kann die Neue Ökonomische Geographie einen wesentlichen Erklärungsbeitrag leisten, insbesondere vor dem Hintergrund des im Zuge der Preisliberalisierung erfolgten, noch nachwirkenden realen Anstiegs der Kosten des Frachtverkehrs. Diese schützen zum einen die im Zentrum ansässigen Unternehmen vor Wettbewerbern außerhalb der Zentren und verteuern zum anderen die Versorgung der peripheren Regionen. Die Untersuchungsergebnisse stützen die Hypothese, dass steigende Transportkosten die Raumstruktur beeinflussen. Vor dem Hintergrund eines möglichen Energiepreisanstiegs besitzen die Beobachtungen am Städtesystem Russlands daher auch für Deutschland Relevanz.
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7. Konferenz “Von der Transformation zur europäischen Integration – Ostdeutschland und Mittelosteuropa in der Forschung des IWH“ – ein Bericht
Gerhard Heimpold, Anne Löscher
Wirtschaft im Wandel,
No. 1,
2014
Abstract
Am 16. Dezember 2013 fand am IWH die Konferenz „Von der Transformation zur europäischen Integration – Ostdeutschland und Mittelosteuropa in der Forschung des IWH“ statt. Den Eröffnungsvortrag hielt der Minister für Wissenschaft und Wirtschaft des Landes Sachsen-Anhalt, Hartmut Möllring, zum Thema „Internationalisierungsstrategie für Sachsen-Anhalt: Ziele, Umsetzung und künftige Handlungsbedarfe“. In den darauf folgenden Vorträgen von Wissenschaftlerinnen und Wissenschaftlern des IWH wurden Befunde über die Internationalisierung des FuEStandortes Deutschland, die Umsetzung des europäischen Fiskalpakts und der deutschen Schuldenbremse, die Konjunkturentwicklung in Ostdeutschland und über die Auswirkungen der Preisliberalisierung auf das Städtesystem Russlands präsentiert. Den Abschluss bildete ein Podiumsgespräch mit Persönlichkeiten aus Unternehmen der Region und der Wissenschaft zum Thema: „Ostdeutsche Mittelständler auf Erfolgskurs in Europa – Was steckt dahinter?“
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What Do We Learn from Schumpeterian Growth Theory?
Philippe Aghion, Ufuk Akcigit, Peter Howitt
P. Aghion, S. N. Durlauf (eds.), Handbook of Economic Growth, Volume 2B, Amsterdam: North Holland,
2014
Abstract
Schumpeterian growth theory has operationalized Schumpeter’s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process that could not be properly addressed by alternative theories. In this survey, we focus on four important aspects, namely: (i) the role of competition and market structure; (ii) firm dynamics; (iii) the relationship between growth and development with the notion of appropriate growth institutions; and (iv) the emergence and impact of long-term technological waves. In each case, Schumpeterian growth theory delivers predictions that distinguish it from other growth models and which can be tested using micro data.
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Determinants of Foreign Technological Activity in German Regions – A Count Model Analysis of Transnational Patents (1996-2009)
Eva Dettmann, Iciar Dominguez Lacasa, Jutta Günther, Björn Jindra
Abstract
This paper analyses the determinants of spatial distribution of foreign technological activity across 96 German regions (1996-2009). We identify foreign inventive activity by applying the ‘cross-border-ownership concept’ to transnational patent applications. The descriptive analysis shows that foreign technological activity more than doubled during the observation period with persistent spatial heterogeneity in Germany. Using a pooled count data model, we estimate the effect of various sources for externalities on the extent of foreign technological activity across regions. Our results show that foreign technological activity is attracted by technologically specialised sectors of regions. In contrast to existing findings this effect applies both to foreign as well as domestic sources of specialisation. We show that the relation between specialisation and foreign technological activity is non-linear and that it is influenced by sectoral heterogeneity. Externalities related to technological diversification attract foreign R&D only into ‘higher order’ regions.
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