Most countries adopt policies in order to attract foreign multinationals, stimulate industrial clustering and to foster innovation. This book links these topical issues. It examines the activities of multinational enterprises, their contribution to cluster development, how they stimulate linkages with domestic firms and contribute to innovation. The efficiency, appropriateness and sufficiency of these policies is discussed, and practical proposals made throughout the volume. New empirical evidence is provided on a variety of industries and country contexts.

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