Production and Corporations

Innovation and production are central challenges for the organization of modern capitalism. Chapter 8 outlines these and discusses the emergence of the modern company as a central vehicle for innovation, often based on basic research undertaken by the state. Multinational corporations have played a central role in international political economy for several decades. Particularly relevant, however, are those MNEs that potentially have considerable political influence due to their size. This chapter shows the relevance of multinational enterprises and the direct investments they make, as well as the differences between countries in this regard. Particular attention is paid to the development of global value chains. Finally, the chapter presents initiatives and lines of conflict in the international regulation of cross-border investments.