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How does the regional presence of foreign-owned multinational enterprises affect local start-up performance

Grillitsch, Markus LU ; Martynovich, Mikhail LU orcid ; Nilsson, Magnus LU and Schubert, Torben LU (2023) 2023/3.
Abstract
This paper analyses how the presence of foreign-owned multinational enterprises (MNEs) affects the performance of start-ups in the same region. Focusing on the population of Swedish start-ups and MNEs between 2007 and 2015, we investigate the relationship between start-up productivity and regional share of MNE employment. We find effects that differ by sectoral belonging of start-ups and MNEs. Notably, while the effects of the local presence of foreign-owned MNEs are negative when start-ups and local MNEs belong to the same sector, they are positive for the local presence of MNEs in related and (to some weaker extent) unrelated sectors. Moreover, we find that as start-ups mature the effect of the local presence of foreign-owned MNEs on... (More)
This paper analyses how the presence of foreign-owned multinational enterprises (MNEs) affects the performance of start-ups in the same region. Focusing on the population of Swedish start-ups and MNEs between 2007 and 2015, we investigate the relationship between start-up productivity and regional share of MNE employment. We find effects that differ by sectoral belonging of start-ups and MNEs. Notably, while the effects of the local presence of foreign-owned MNEs are negative when start-ups and local MNEs belong to the same sector, they are positive for the local presence of MNEs in related and (to some weaker extent) unrelated sectors. Moreover, we find that as start-ups mature the effect of the local presence of foreign-owned MNEs on start-up productivity increases, irrespective of their sectoral belonging. (Less)
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author
; ; and
organization
publishing date
type
Working paper/Preprint
publication status
submitted
subject
keywords
Productivity, Start-ups, Multinational enterprises (MNEs)
volume
2023/3
publisher
Papers in Innovation Studies
language
English
LU publication?
yes
id
051c6c01-ecf0-40c1-967c-a6bc196e36a9
alternative location
https://ideas.repec.org/p/hhs/lucirc/2023_003.html
date added to LUP
2023-09-22 15:21:19
date last changed
2023-10-09 19:04:30
@misc{051c6c01-ecf0-40c1-967c-a6bc196e36a9,
  abstract     = {{This paper analyses how the presence of foreign-owned multinational enterprises (MNEs) affects the performance of start-ups in the same region. Focusing on the population of Swedish start-ups and MNEs between 2007 and 2015, we investigate the relationship between start-up productivity and regional share of MNE employment. We find effects that differ by sectoral belonging of start-ups and MNEs. Notably, while the effects of the local presence of foreign-owned MNEs are negative when start-ups and local MNEs belong to the same sector, they are positive for the local presence of MNEs in related and (to some weaker extent) unrelated sectors. Moreover, we find that as start-ups mature the effect of the local presence of foreign-owned MNEs on start-up productivity increases, irrespective of their sectoral belonging.}},
  author       = {{Grillitsch, Markus and Martynovich, Mikhail and Nilsson, Magnus and Schubert, Torben}},
  keywords     = {{Productivity; Start-ups; Multinational enterprises (MNEs)}},
  language     = {{eng}},
  note         = {{Working Paper}},
  publisher    = {{Papers in Innovation Studies}},
  title        = {{How does the regional presence of foreign-owned multinational enterprises affect local start-up performance}},
  url          = {{https://ideas.repec.org/p/hhs/lucirc/2023_003.html}},
  volume       = {{2023/3}},
  year         = {{2023}},
}