Ninth Global Development Conference, 2008 ANU Research Workshop: Emerging Trends and Patterns of Trade and Investment in Asia 1-2 February 2008 Competitive Strategies of Japanese/U.S. Multinationals in Global Production Networks and Clusters1 - The Case of Hard Disk Drive (HDD) Industry - AMANO Tomofumi Associate Professor, Graduate School of Economics Researcher, Manufacturing Management Research Center (MMRC) The University of Tokyo Contact: AMANO Tomofumi, Graduate School of Economics, the University of Tokyo Address: 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan E-mail
[email protected] [email protected] 1 This report has expanded and revised the content of Chapter 5 of the following book for the purpose of presentation at the GDN workshop, Brisbane, Australia: Amano Tomofumi, Higashi Ajia No Kokusai Bungyō To Nihon Kigyō: Aratana Kigyō Seichō He No Tenbō (East Asian Linkage and Japanese Firmss: A New Perspective of Corporate Growth), Yuhikaku. Introduction This paper discusses the location strategies of multinational firms based and the industrial policies of the investment recipient countries. For firms engaged in international business, the timing of foreign investment, selection of the locations, and maintenance and expansion of their local operations are all important strategic matters. Then what can be the strategic nature of foreign investment by firms that have succeeded in strengthening their competitive advantage? What are the unique aspects of the policies taken by recipient countries? This report will focus upon the strategic nature of investment for global firms and the strategic nature of investment-attracting policy for the recipient countries. Since the determinant factors of foreign investment have been a core theme for studies on multinational firms, there is already a large literature upon the topic.