A large stream of studies has increasingly focused on positive spillovers and linkages that multinationals develop with local actors. However, negative effects might also arise when multinationals monopolise local markets, and displace domestic production. Less attention has been devoted to the home country's side of the story. Investments abroad may be a source of opportunities for enhancing competitiveness by allowing multinationals to overcome the weaknesses of their home innovation system as well as to search and pick up unexpected chances for new knowledge exploration. At the same time, multinationals' activities abroad may impact on the composition of the labour force at home.
The chapters of the book offer an overview of the economic research dealing with the process of firms' internationalisation and the impact of multinationals' activity on local competitiveness, by presenting a set of theoretical and empirical contributions characterised by high methodological rigour and scientific excellence. Some of the chapters were based on works presented during the Lunch Seminars organised by the Dipartimento di Ingegneria Gestionale (DIG) of Politecnico di Milano, and benefited from comments and suggestions from the participants.
This volume is the fifth of an ongoing series that aims at handing down to the readers the wealth of theoretical and empirical contributions stemming from DIG Lunch Seminars.

Lucia Piscitello is Professor of International Institutions and Regulation at Politecnico di Milano. Her research interests concern direct and indirect effects of FDI on the host and the home country, the relationship between internationalisation and skill upgrading, the location of R&D activities by MNCs, the internationalisation of SMEs, clusters and industrial districts, knowledge transfer and technological catching up through FDI.
Grazia D. Santangelo is Professor of Economics at the University of Catania. Her research interest concerns corporate geography and specialisation of technological development in high-tech industries, inter-firm technological development, innovation and labour organisational practises, the dynamics of ICT industry in Europe. In her most recent work, she has also explored the activity of MNCs in the regional dimension within the European context.