It is hypothesized that the subnational, interregional location of foreign direct investment is influenced by the country of origin, the industry, and the specific functions of the investment. The authors studied these characteristics of 1163 foreign-owned business establishments in New York State, comparing them with the location, industry specialization, and occupational structure of five regions of New York State. Foreign-owned businesses take full part in the spatial division of activities across the state. Indeed, in some cases the special needs of foreign-owned business have led the specialization of regions' industry and activity mixes. Where a region's sectoral or activity mix is not greatly reinforced by the foreign-owned activities in the region, it is usually because of the intervening effects of source-country specialization or source-country locational proclivity.
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