Dissertation defence (Economic geography): MSc Lucía Gómez

MSc Lucía Gómez defends the dissertation in Economic geography titled “FDI and technological advancement in the Global South. Perspectives on the emergence of Medellín as an investment hub” at the University of Turku on 27 September 2024 at 12.00 (University of Turku, Turku School of Economics, LähiTapiola auditorium, Rehtoripellonkatu 3, Turku).

The audience can participate in the defence by remote access: https://echo360.org.uk/section/77b80651-daa6-4df0-b760-85a1a5570a48/public

Opponent: Professor Martina Fromhold-Eisebith (RWTH Aachen University, Germany)
Custos: Dr.Sc.(Econ.) Päivi Oinas (University of Turku)

Doctoral Dissertation at UTUPub: https://urn.fi/URN:ISBN:978-951-29-9829-6

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Summary of the Doctoral Dissertation:

Why Cities in Emerging Economies Seek to Attract Multinational Companies: The Rise of Medellín as an Investment Hub

Under favourable conditions, multinational technology companies may have a positive influence on emerging countries by introducing new technologies, expertise and skills, boosting local businesses, and facilitating the growth of high-tech industries and international connections. Many cities in these countries seek to attract such firms to strengthen their economies and help local companies compete in today’s technology-driven markets. However, while advanced regions like Silicon Valley in California thrive on high-tech activities, emerging cities are often viewed as hubs for cheap labour. Despite investments in infrastructure, innovation policies, and incentives, their success remains uncertain.

How can these cities attract high-tech activities and achieve the expected returns? To understand what it takes for developing cities to compete for technological investments and benefit from them, I study the case of Medellín, Colombia—a city once notorious for drug cartels, now transforming into a technology hub attracting multinational companies in information and communication technologies.

My research shows that diverse, gradual transformative changes were essential to attract multinational companies to Medellín. Improving living conditions in informal settlements through public infrastructure, transportation, and education and entrepreneurship programs created a safer, more stable environment, improved mobility, boosted businesses and tourism, and made the city well-known. These efforts, along with strategic investments and innovation programs, helped modernize the technology sector, increasing demand for new advanced skills, technologies, and services. As a result, diverse multinational companies began entering Medellín—some to support the growing local technology sector and the city’s digital transition, others to take advantage of favourable conditions for technology industries.

Medellín’s experience shows that technological progress and sustained development can be achieved by implementing local strategies that target the population at large as well as key industries, making emerging cities attractive to foreign tech firms. The research critically analyses corporate activities to identify those that boost local development instead of draining resources and presents a model that captures a city’s transformation into an investment hub.
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