In a groundbreaking interdisciplinary study, researchers from the Singapore-MIT Alliance for Research and Technology (SMART), in collaboration with the Massachusetts Institute of Technology (MIT) and the National University of Singapore (NUS), have unveiled compelling evidence linking the intricacies of global air connectivity with the geographical strategies of multinational corporations (MNCs). This comprehensive analysis merges data from 7.5 million firms across 30 years with detailed flight route information spanning over 800 cities in 142 countries, providing an unprecedented lens into how the global air transportation network shapes international corporate investment and subsidiary establishment.
Traditional assessments of airport cities’ connectivity have often centered on simple metrics such as passenger numbers or counts of direct flights. However, this approach neglects the complex topology of global air networks, including indirect routes and the influence of network centrality on urban attractiveness to businesses. The study breaks new ground by incorporating advanced network theory, utilizing measures including degree centrality, betweenness centrality, and eigenvector centrality—each offering nuanced insights into a city’s position within the global aviation landscape and its impact on investment flows.
At the heart of the findings is the revelation that the quality of flight connections exerts a more substantial influence on MNC subsidiary location decisions than mere quantity. Specifically, eigenvector centrality—a metric capturing not only the number of direct flight connections but also the connectedness of neighboring hubs—emerged as the most potent predictor of multinational expansion. Cities boasting linkages to highly connected hubs attract far greater foreign investment, underscoring the strategic advantage conferred by embeddedness within the global network.
Another pivotal insight relates to travel convenience: subsidiaries are less likely to be established in cities requiring multiple layovers to reach from the parent company’s location. The data demonstrates a striking negative correlation, with a single layover reducing subsidiary establishment by 20%, and two or more layovers correlating with a 34% decrease. This empirical evidence quantifies how air traffic network design profoundly influences global business coordination and expansion.
The implications for knowledge-intensive sectors are particularly pronounced. Industries reliant on frequent, face-to-face interactions—such as finance, consulting, and technology—show heightened sensitivity to the quality of air connectivity. Direct flight availability and strategic network positioning are decisive factors that enhance these sectors’ ability to attract and maintain foreign subsidiaries. Conversely, sectors like manufacturing and retail exhibit weaker correlations with flight connectivity, reflecting differing operational needs and inter-firm coordination mechanisms.
Singapore exemplifies these dynamics, consistently ranking among the world’s most centrally connected cities by eigenvector centrality. With approximately 6,000 large to mid-sized foreign-owned subsidiaries generating significant revenues, Singapore’s strategic aviation links to other globally influential hubs, including London, Paris, and Tokyo, have played an instrumental role in its evolution as a preferred destination for multinational enterprises. This high level of embeddedness within the network substantiates the hypothesis that air connectivity is a structural driver of economic competitiveness.
The research methodology deployed by the team represents a significant advance, merging the Orbis database’s extensive corporate records with comprehensive International Civil Aviation Organisation flight data spanning three decades. This allows for dynamic analysis of changing connectivity patterns and corporate responses amid evolving global economic landscapes, including the impacts of digital communication proliferation and the COVID-19 pandemic. Remarkably, despite technological shifts that ostensibly diminish the need for physical travel, the study reveals an enduring and robust relationship between air connectivity and multinational subsidiary localization.
Underlying this discovery is a sophisticated analytical framework grounded in network theory. Degree centrality accounts for direct flight routes accessible from a city, whereas betweenness centrality measures a city’s role as a transfer point within the global network. Eigenvector centrality differentiates itself by weighting connections based on the connectivity of the linked nodes, thus capturing indirect strategic advantages. Through these, the study quantitatively articulates the embeddedness of cities within the worldwide air travel graph and extrapolates its influence on investment patterns.
This intricate web of connectivity also informs urban planning and policy design. Planners aiming to elevate their cities’ global competitiveness must prioritize establishing not only numerous routes but also fostering links to influential hubs within the global air network. The findings advise that enhancing eigenvector centrality, and thereby improving indirect connectivity to major airports, can yield meaningful economic dividends by attracting multinational firms and encouraging expansion.
Given the intensifying geopolitical and trade complexities that characterize the contemporary global order, the necessity of reliable, high-quality air connections is underscored by the essential role of trust and interpersonal engagement in international business. The study’s authors emphasize that digital communication tools cannot entirely substitute for face-to-face interactions, particularly in the contexts of negotiation, relationship-building, and coordination. Thus, cities’ roles as physical nodes within global networks remain vital for resilience in the face of international uncertainties.
The study further delineates practical insights for maintaining sustainable economic vibrancy as urban centers vie to become or remain global hubs. Strategic innovation and investment in aviation infrastructure, exemplified by Singapore’s policies, are critical levers. As cities develop such infrastructure, mindful integration into the broader network—recognizing the structural network position rather than only localized connectivity—is essential for maximizing benefits and attracting multinational firms.
Co-authors of the study advocate an expanded appreciation of global air transportation beyond its traditional conception as a mere conduit for movement. They highlight it as a fundamental economic infrastructure with complex topological characteristics that facilitate, accelerate, or hinder multinational business processes. This recognition calls for multidimensional analysis in urban and transportation planning, intertwining technical network science with economic and spatial development strategies.
In summary, the research quantifies and qualifies global air connectivity’s pivotal role in urban economic attractiveness, revealing how the structural embeddedness of cities within the aviation network shapes multinational firms’ spatial strategies. By refining existing models and emphasizing metrics like eigenvector centrality, the study opens pathways for more informed policy-making, encouraging urban centers to foster connectivity that balances direct accessibility with network influence, ultimately enabling resilient and sustainable integration in an increasingly interconnected global economy.
Subject of Research: Global air transportation networks and their impact on multinational corporate investments
Article Title: Air connectivity boosts urban attractiveness for global firms
News Publication Date: 7 January 2026
Web References:
- Nature Cities Article
- SMART M3S Research Group
- Singapore-MIT Alliance for Research and Technology (SMART)
References:
- International Civil Aviation Organisation flight data (1993–2023)
- Orbis firm-level corporate data database
Image Credits: SMART M3S
Keywords: Airports, Transportation engineering, Aircraft, Economics, Applied research, Urban planning
