An analysis of the impact of inward investment on the
competitiveness of indigenous firms, Multinational Enterprises and
Technological Spillovers draws on evidence from the UK and Italian
manufacturing sectors to show how foreign presence may generate
both virtuous and vicious circles of development according to a
number of interrelated factors. These include the level of the
foreign presence, its rate of increase, the technological
disparities between foreign and indigenous firms and the political
response. An examination of the productive and innovatory
activities of US and Japanese firms in Europe is also provided to
enlighten the differential role of European countries in the global
operations of overseas multinationals.
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