IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v21y2007i3p437-451.html
   My bibliography  Save this article

Global Knowledge and R&D Foreign Direct Investment Flows: Recent Patterns in Asia Pacific, Europe, and North America

Author

Listed:
  • Robert Huggins
  • Mehmet Demirbag
  • Violina Iankova Ratcheva

Abstract

The global nature of foreign direct investment (FDI) is changing in terms of both location and sectors of activity. This paper analyses recent flows of R&D FDI across the globe. It is found that North America has been the source of one-half of all R&D FDI between 2002 and 2005. Asia Pacific, especially China and India, has been the overwhelming destination for most R&D FDI, accounting for more than one-half of all investment and almost three-quarters of the jobs created. In general, R&D FDI has not been equitably spread across nations such as India and China but concentrated in a small number of locations. R&D FDI from advanced economies is facilitating the emergence of new centres and clusters of knowledge across the globe. This global redistribution of knowledge brings challenges to policymakers in both the developed and the developing world. The challenges come in two main forms: first, cross-regional disparities in knowledge-based wealth creation within particular nations; and second, anxieties about the offshoring of knowledge-based tasks and jobs. It is argued that current patterns of global knowledge flow require policies to nurture the open regional innovation systems being established by these flows.

Suggested Citation

  • Robert Huggins & Mehmet Demirbag & Violina Iankova Ratcheva, 2007. "Global Knowledge and R&D Foreign Direct Investment Flows: Recent Patterns in Asia Pacific, Europe, and North America," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(3), pages 437-451.
    • Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:437-451
    DOI: 10.1080/02692170701390437
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170701390437
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02692170701390437?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bardhan, Ashok Deo & Jaffee, Dwight M, 2005. "Innovation, R&D and Offshoring," Fisher Center for Real Estate & Urban Economics, Research Reports qt24d9s78v, Fisher Center for Real Estate & Urban Economics, UC Berkeley.
    2. James R. Markusen & Keith E. Maskus, 2001. "General-Equilibrium Approaches to the Multinational Firm: A Review of Theory and Evidence," NBER Working Papers 8334, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    2. Deschryvere, Matthias & Kotiranta, Annu, 2008. "Domestic Employment Effects of Offshoring: Empirical Evidence from Finland," Discussion Papers 1166, The Research Institute of the Finnish Economy.
    3. Sheldon, Peter & Li, Yiqiong, 2013. "Localized poaching and skills shortages of manufacturing employees among MNEs in China," Journal of World Business, Elsevier, vol. 48(2), pages 186-195.
    4. Fatma Halide Kivrak, 2020. "An insight into R&D in emerging countries and prominent concepts within the literature," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 2(1), pages 01-16, January.
    5. Fernandez, Anne-Sophie & Chiambaretto, Paul & Chauvet, Mathieu & Engsig, Juliane, 2021. "Why do MNEs both make and coopete for innovation?," Technovation, Elsevier, vol. 106(C).
    6. Robert Huggins & Shougui Luo & Piers Thompson, 2014. "The competitiveness of China's Leading Regions: Benchmarking Their Knowledge-based Economies," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(3), pages 241-267, July.
    7. Rodgers, Peter & Khan, Zaheer & Tarba, Shlomo & Nurgabdeshov, Assylbek & Ahammad, Mohammad F., 2019. "Exploring the determinants of location choice decisions of offshored R&D projects," Journal of Business Research, Elsevier, vol. 103(C), pages 472-483.
    8. Lorena M. D'Agostino & Grazia D. Santangelo, 2012. "The Global Fragmentation of R&D Activities: The Home Region Perspective," DRUID Working Papers 12-06, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    9. Erickson, Andrew S. & Walsh, Kathleen A., 2008. "National security challenges and competition: Defense and space R&D in the Chinese strategic context," Technology in Society, Elsevier, vol. 30(3), pages 349-361.
    10. Itzhak Goldberg & Lee Branstetter & John Gabriel Goddard & Smita Kuriakose, 2008. "Globalization and Ttechnology Absorption in Europe and Central Asia : The Role of Trade, FDI, and Cross-Border Knowledge Flows," World Bank Publications - Books, The World Bank Group, number 6445, December.
    11. Meyer Susanne & Berger Martin, 2014. "Internationalisation of research and development activities of small and medium-sized enterprises in Austria: Strategic drivers for spatial organisation," ZFW – Advances in Economic Geography, De Gruyter, vol. 58(1), pages 1-17, October.
    12. Dirk Holtbrügge & Carina B. Friedmann, 2016. "Does location choice affect foreign subsidiary success in India? An empirical study based on Porter's diamond model," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 8(1), pages 3-29.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aizenman, Joshua, 2003. "Volatility, employment and the patterns of FDI in emerging markets," Journal of Development Economics, Elsevier, vol. 72(2), pages 585-601, December.
    2. Alexander Hijzen & Sébastien Jean & Thierry Mayer, 2011. "The effects at home of initiating production abroad: evidence from matched French firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(3), pages 457-483, September.
    3. Talamo, Giuseppina, 2010. "Corporate governance and capital flows," MPRA Paper 35853, University Library of Munich, Germany, revised 2011.
    4. Ann Harrison & Margaret McMillan, 2022. "Offshoring Jobs? Multinationals And U.S. Manufacturing Employment," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 11, pages 255-273, World Scientific Publishing Co. Pte. Ltd..
    5. Yang, Chia-Hsuan & Nugent, Rebecca & Fuchs, Erica R.H., 2016. "Gains from others’ losses: Technology trajectories and the global division of firms," Research Policy, Elsevier, vol. 45(3), pages 724-745.
    6. Gianmarco I.P. Ottaviano & Alessandro Turrini, 2002. "Distance and FDI when Contracts are Incomplete," Development Working Papers 165, Centro Studi Luca d'Agliano, University of Milano.
    7. Ludo Cuyvers & Michel Dumont & Glenn Rayp & Katrien Stevens, 2005. "Home Employment Effects of EU Firms’ Activities in Central and Eastern European Countries," Open Economies Review, Springer, vol. 16(2), pages 153-174, April.
    8. Afful, Efua Amoonua, 2012. "Technology Spillover from International Flows: Imports, Foreign Direct Investment and Immigration," MPRA Paper 57606, University Library of Munich, Germany.
    9. Laura Alfaro & Andrew Charlton, 2009. "Intra-industry Foreign Direct Investment," American Economic Review, American Economic Association, vol. 99(5), pages 2096-2119, December.
    10. Debaere & PEter, 2004. "Reversing the Perspective: Multinational Activity from Middle-Income Countries," Econometric Society 2004 North American Summer Meetings 140, Econometric Society.
    11. Tekin-Koru, Ayca & Waldkirch, Andreas, 2007. "North American Integration and the Location of Foreign Direct Investment," MPRA Paper 5212, University Library of Munich, Germany.
    12. Xiong, Tingting, 2022. "The Effect of Bilateral Investment Treaties (BITs) on the extensive and intensive margins of exports," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 68-79.
    13. Pol Antràs, 2003. "Firms, Contracts, and Trade Structure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1375-1418.
    14. Bruno Merlevede & Koen Schoors, 2009. "Privatisation and foreign direct investment in 10 transition countries," Post-Communist Economies, Taylor & Francis Journals, vol. 21(2), pages 143-156.
    15. Ali-Yrkkö, Jyrki & Deschryvere, Matthias, 2008. "Domestic R&D Employment Effects of Offshoring R&D Tasks: Some Empirical Evidence from Finland," Discussion Papers 1163, The Research Institute of the Finnish Economy.
    16. repec:agr:journl:v:4(621):y:2019:i:4(621):p:219-240 is not listed on IDEAS
    17. Conconi, Paola & Sapir, André & Zanardi, Maurizio, 2016. "The internationalization process of firms: From exports to FDI," Journal of International Economics, Elsevier, vol. 99(C), pages 16-30.
    18. Minor, Peter J., 2010. "Time as a Barrier to Trade: A GTAP Database of ad valorem Trade Time Costs," Conference papers 331960, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Eduardo Levy Yeyati & Christian Daude & Ernesto Stein, 2002. "The FTAA and the Location of FDI," Business School Working Papers diecisiete, Universidad Torcuato Di Tella.
    20. Dalila Chenaf-Nicet & Eric Rougier, 2016. "The Effect of Macroeconomic Instability on FDI Flows: A Gravity Estimation of the Impact of Regional Integration in the Case of Euro-Mediterranean Agreements," International Economics, CEPII research center, issue 145, pages 66-91.
    21. Debaere, Peter & Lee, Hongshik & Lee, Joonhyung, 2006. "Does Where You Go Matter? The Impact of Outward Foreign Direct Investment on Multinationals' Employment at Home," CEPR Discussion Papers 5737, C.E.P.R. Discussion Papers.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:437-451. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.