Multinationals, intracorporate competition, and regional development

In this paper we concentrate on a neglected process in the restructuring of multinational enterprises (MNEs) and the formation of spatial divisions of labor. Existing conceptions of interlocality competition for mobile invest ment and spatial divisions of labor center on the dynamics of new greenfiel d investment. We provide instead an exploratory analysis of interlocality c ompetition centered on intracorporate competition for repeat investment, br oadly defined. We draw together diverse strands of literature to develop a simple taxonomy of types of intracorporate competition, exploring some of t he implications of competition for successful MNE affiliates and their host localities. We go on to illustrate these ideas with reference to case stud ies of manufacturing affiliates of MNEs in an older industrial region of Wa les. Although many of the repeat investments of MNEs are in principle conte stable, the discussion and the case studies stress the difficulties faced b y affiliates and localities at the periphery of spatial divisions of labor in winning, retaining, and benefiting from such investments.