Preliminary Draft: Not to be Quoted without the Authors' Permission Simona Iammarino*, Jan-Philipp Kramer** a , Elisabetta Marinelli* & Javier Revilla Diez** *SPRU/University of Sussex **Leibniz University Hannover a Corresponding author: Leibniz University Hannover Institute of Economic and Cultural Geography Schneiderberg 50, 30163 Hannover, Germany Email: kramer@wigeo.uni-hannover.de Abstract This paper provides qualitative insights on the key channels through which intangible assets (IAs) are enhanced in MNEs innovation processes, and describes their spatial roots and impacts. Furthermore, insights on open innovation strategies of MNEs are given, with a specific focus on three IAs, namely human, organizational and network capital. These IAs have been shown by the literature to be crucial both to MNEs open innovation strategies and to regional knowledge creation and spillovers. The research has been based on over forty in-depth interviews to senior managerial and technical staff of flagship MNEs of the Automotive, Life Science and ICT sector from both Germany and the United Kingdom. By focussing on the processes through which investment in IAs occurs and the structures that support those processes within the firm and the regional environment, some of the key dimensions through which the three IAs are enhanced and contribute to open innovation strategies of MNEs in regional innovation systems are identified. Keywords Intangible assets, Multinational Enterprises, Open Innovation Strategies, Regional Innovation Systems, Europe JEL Classification F23, L14, L22, O31, O32, R11. Intangible Assets and MNEs’ Locational Strategies for Innovation: Empirical Insights on Open Innovation in Regional Innovation Systems from Germany and the UK The research leading to these results has received funding from the European Community's Seventh Framework Programme (FP7/2007-2013) under grant agreement n° 216813