Location, Collocation and Innovation by Multinational Enterprises: A Research Agenda

The distribution of creative economic activity over space has been viewed from three distinct perspectives: International business focuses on the multinational enterprise and the location of activities across national borders; economic geography studies the characteristics of the location site; and innovation scholars are mainly concerned with the technologies and knowledge that arises from the interaction of location and the creativity of actors. All these communities have drawn attention to collocation. However, the nexus of the three literatures is surprisingly thin, in particular with regard to the conditions under which collocation is an advantage or a disadvantage. In this paper, we take stock of the knowledge developed by the three communities and move the discussion further by qualifying a number of these conditions. Based on these considerations, we then propose a number of directions for future research.