Inward Investment, Diffusion of Knowledge and New Working Practices

Abstract

This paper examines intra-firm labour market resource transfer within the South Wales automotive components and electronics manufacturing cluster. Most importantly it illustrates, via three case studies, the process of resource transfer of production and management skills from incoming multinationals to other firms in the region, through the recruitment of indigenous management employed in such multinationals by local firms. The consequences of transference of such knowledge on the firms involved are also discussed, as are limitations to beneficial transfer created by the structures of the firms and industries involved and the inherent weaknesses of the Welsh economy more generally.