The Dual Role of Multinational Corporations in Cluster Evolution: When You Dance with the Devil, You Wait for the Song to Stop

Abstract

This chapter shows that multinational corporations play a dual role in cluster evolution through the case of the wireless communications cluster in Northern Denmark. On the one hand, they bring in resources to the cluster, such as financial resources, technology, knowledge, innovation networks, and access to new markets. On the other hand, they cause changes in local interaction, decision making in firms, and the scope of activities in the value chain. This chapter highlights the positive and negative effects of multinational corporations (MNCs) and makes the claim that greater emphasis should be placed on MNCs when studying cluster evolution.

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