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Is foreign direct investment attracted to 'knowledge creators'?

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  • Catherine Co
  • John List

Abstract

The effect of 'knowledge creators' on location patterns of new foreign plants entering the USA from 1986 to 1993 is analysed. The empirical results from a conditional logit model suggest a link exists between knowledge bases, measured by patent counts, and the location decisions of foreign plants. In the limit, these results imply that a 1% increase in patent counts is associated with an increase in the probability of attracting a new foreign plant by as much as 1.874%.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 11 ()
Pages: 1143-1149

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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1143-1149

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  1. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
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  4. List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July.
  5. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
  6. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
  7. Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
  8. Catherine Co & Mark Wohar, 2004. "Technological convergence among US regions and states," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(2), pages 101-126.
  9. Katharine L. Bradbury & Yolanda K. Kodrzycki & Robert Tannenwald, 1997. "Effects of state and local public policies on economic development: an overview," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 1-12.
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Cited by:
  1. Huilin Lin & Ryh-Song Yeh, 2005. "The interdependence between FDI and R&D: an application of an endogenous switching model to Taiwan's electronics industry," Applied Economics, Taylor & Francis Journals, vol. 37(15), pages 1789-1799.

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