We examine the foreign direct investment (FDI) activities of firms from both developed and emerging markets (EM) in a highly developed science and technology cluster, the bio-pharmaceutical industry. We create a unique dataset that allows us to analyze the collocation patterns and configurations of 19,843 offices, including 3,261 foreign offices from 61 foreign countries operating in the United States (U.S.) over the past four decades up until 2018. Using a mix-methods approach, we find there is no one-size-fits-all optimal set of characteristics for attracting foreign investments. We developed a four-tiered ranking scheme to differentiate collocation nuances ranging from established (tier one) to least established (tier four) clusters. Our results show that while foreign companies from emerging markets have a stronger preference to collocate in more established clusters and in clusters with a larger proportion of other foreign firms, they also have preferred collocation patterns and are more likely to collocate in clusters with specific resource configurations. Thus, depending upon the type of firm and where they come from, foreign firms have either more or less collocation choices. Our results have important theoretical and managerial implications.
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