Multinationals, Intracorporate Competition, and Regional Development*

Abstract

Abstract: 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 investment and spatial divisions of labor center on the dynamics of new greenfield investment. We provide instead an exploratory analysis of interlocality competition centered on intracorpo‐rate competition for repeat investment, broadly defined. We draw together diverse strands of literature to develop a simple taxonomy of types of intracorporate competition, exploring some of the implications of competition for successful MNE affiliates and their host localities. We go on to illustrate these ideas with reference to case studies of manufacturing affiliates of MNEs in an older industrial region of Wales. Although many of the repeat investments of MNEs are in principle contestable, the discussion and the case studies stress the difficulties faced by affiliates and localities at the periphery of spatial divisions of labor in winning, retaining, and benefiting from such investments.