Multinational corporations and the location of technological innovation inthe UK regions

In a rapidly globalizing economy, and particularly in the face of a process of economic integration such as that occurring in the European Union, regi ons forge an increasing number of linkages with other locations within and across national boundaries through the local technological development effo rts of multinational corporations (MNCs). By using patents granted to the l argest industrial firms - arranged by the region host to the research facil ity responsible - the paper explores the location of innovative activities in MNCs, and the relationship between the profiles of technological special ization of foreign-owned and indigenous companies in the UK regions. The re sults are consistent with the hypothesis that the pattern of MNC networks f or innovation conforms to a hierarchy of regional centres, and that the pat tern of technological specialization of foreign-owned affiliates in differe nt regional locations depends upon the position of the region in the locati onal hierarchy.