Close Together or Far Apart? The Geography of Host-country Knowledge Sourcing and MNC's Innovation Performance

Alessandra Perri, Grazia D. Santangelo*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


We investigate the influence of different host-country knowledge sources on the quality and generality of multinational corporation (MNC) innovation. We suggest that the quality of MNC innovation increases with the geographical distance from local industrial organizations. We also argue that the generality of MNC innovation increases with the distance from local research institutions, but decreases after a certain threshold. We explain these relationships based on the different cognitive and geographical distances separating MNC innovation activities from industrial organizations and research institutions. We test our arguments on a sample of US Patent and Trademark Office (USPTO) patents developed in the United States by foreign semiconductor MNCs.
Original languageEnglish
JournalRegional Studies
Issue number2
Pages (from-to)370-383
Number of pages14
Publication statusPublished - Feb 2023

Bibliographical note

Published online: 07 Jul 2022.


  • Multinational corporation (MNC)
  • Innovation quality and generality
  • Host-country knowledge sourcing
  • Geographical distance
  • Cognitive distance

Cite this