Comparison of Localisation Motives for R&;D Investment of Multinational Enterprises in the New and Old EU Member Regions

The issue of localisation motives is one of the key topics in attracting and motivating MNEs to establish or enhance their R&D activities abroad. The paper aims to compare localisation motives for R&D investment of multinational enterprises in the new and old EU member regions and to find out main localization motives differences among them. We have found out the key motives were technology/supply side factors, which strongly influence decision-making at MNEs in locating and maintaining R&D in all regions. In the more developed regions, the localisation is positively influenced also by the presence of other important/large (high-tech) companies and important universities in the region, which provide relevant services to MNEs. Localisation decisions in the new EU member regions were positively influenced particularly by presence of a quality and cheap labour force and a suitable R&D infrastructure and experience in R&D in these regions. Considerable differences between the old and new EU member states reflects their distinctive economic history, recent re-opening of their economies and consequences of the process of post-communist transition.