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Regional reconfiguration of the multinational companies in the knowledge economy

Conference contribution
Authors Ola Bergström
Patrik Ström
Published in The European Association for Research on Services, Annual conference 2015, proceedings. Septermber 10-12 2015, Köpenhamn. Organiserat av Roskilde Universitet.
Publication year 2015
Published at Centre for International Business Studies
Department of Business Administration, Management & Organisation
Language en
Keywords EU, labour market, knowledge economy
Subject categories Business Administration, Economic Geography

Abstract

EU member states compete among each other and with the rest of the world for foreign direct investments. Reconfiguration of MNCs’ activities is therefore important for the development of a European policy framework creating an attractive environment for these FDI. Employment in foreign controlled enterprises in European Member States is affected by the way MNCs allocate restructuring, which can be affected by national governments only to a limited extent. From this perspective it is clear that the way restructuring is managed in MNCs has important implications for European policy making. MNC restructuring is driven by concerns for employment protection; MNC strategic developments, the availability of specific restructuring measures, the development in the local market, and the nature of competition in the specific industry. In the knowledge driven economy, dominated by advanced manufacturing and various forms of services that combined creates value at specific locations, reconfiguration of MNC activities is also vital for future competitiveness. Competition for talent in relation to the development of products and services help to transform the economic geography of the EU Single Internal Market. Firms are expanding and changing their industrial foot- print in order to best sustain and develop their competitive advantage. This combines industrial policy with the development of public policy towards facilitating this industrial reconfiguration in a positive way for regions and municipalities. The objectives of the paper are based on this discussion; 1) to study the reasons for MNC spatial reconfiguration, and impact of MNC spatial reconfiguration for industrial policy and employment regimes, and 2) establish a conceptual contribution to the understanding of the connection between advanced manufacturing and business services that help to drive this reconfiguration.

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