Abstract
A major wave of innovation FDI has been taking place as a result of the reconfiguration of global innovation strategy by multinational enterprises. Published data shows that core subnational regions (high global and local connectedness and performance) are the main recipients compared to peripheral regions. This uneven distribution has significant strategic implications for peripheral regional development. This study evaluates exemplar literature that offers valuable insights into the links among MNE FDI, subnational peripheries, and local upgrading. It provides a literature-informed framework which conceptualizes key antecedents, mechanisms, consequences, and their relationships. The study makes three contributions: First, it scrutinises early evidence concerning MNEs and host subnational peripheries and unfolds the current state of knowledge. Second, it introduces a conceptual framework that maps out the nexus of MNE FDI, subnational peripheries, and local innovation upgrading. Third, it highlights how this line of inquiry helps to evaluate the current progress on achieving UN’s Sustainable Development Goal 8, particularly targets 8.2 and 8.3.