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Knowledge Spillovers from Foreign Direct Investment and the Role of Local R&D Activities: Evidence from Indonesia

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  • Todo, Yasuyuki
  • Miyamoto, Koji

Abstract

A large number of studies have used firm-level data to examine whether foreign direct investment (FDI) generates knowledge spillovers to domestically owned firms in less developed countries. However, the results are mixed. In this study, Indonesian plant-level panel data are used to test whether the often-ignored local R&D activities of foreign-owned firms in the host country enhance knowledge spillovers from FDI. The analysis found positive spillovers from R&D-performing foreign-owned firms, while spillovers from non-R&D-performing foreign-owned firms were absent.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 55 (2006)
Issue (Month): 1 (October)
Pages: 173-200

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Handle: RePEc:ucp:ecdecc:y:2006:v:55:i:1:p:173-200

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Web page: http://www.journals.uchicago.edu/EDCC/

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Cited by:
  1. Klimis Vogiatzoglou, 2009. "Determinants of Export Specialization in ICT Products: A Cross-Country Analysis," Working Papers, International Network for Economic Research - INFER 2009.3, International Network for Economic Research - INFER.
  2. Kimura, Hidemi & Todo, Yasuyuki, 2010. "Is Foreign Aid a Vanguard of Foreign Direct Investment? A Gravity-Equation Approach," World Development, Elsevier, Elsevier, vol. 38(4), pages 482-497, April.
  3. KIMURA Hidemi & TODO Yasuyuki, 2007. "Is Foreign Aid a Vanguard of FDI? A Gravity-Equation Approach," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 07007, Research Institute of Economy, Trade and Industry (RIETI).
  4. Andrew Sharpe & Blair Long, 2012. "Innovation in Canadian Natural Resource Industries: A Systems-Based Analysis of Performance, Policy and Emerging Challenges," CSLS Research Reports, Centre for the Study of Living Standards 2012-06, Centre for the Study of Living Standards.
  5. TODO Yasuyuki, 2008. "Impacts of Aid-Funded Technical Assistance Programs: Firm-Level Evidence from the Indonesian Foundry Industry," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 08024, Research Institute of Economy, Trade and Industry (RIETI).
  6. JINJI Naoto & ZHANG Xingyuan & HARUNA Shoji, 2011. "Does the Structure of Multinational Enterprises' Activity Affect Technology Spillovers?," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 11027, Research Institute of Economy, Trade and Industry (RIETI).
  7. ITO Banri & YASHIRO Naomitsu & XU Zhaoyuan & CHEN Xiaohong & WAKASUGI Ryuhei, 2010. "How Do Chinese Industries Benefit from FDI Spillovers?," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 10026, Research Institute of Economy, Trade and Industry (RIETI).
  8. Chung, Yessica C.Y., 2012. "Ethnic Networks and Technical Knowledge Learning in Industrial Clusters," Working Papers, JICA Research Institute 37, JICA Research Institute.
  9. Anabel Marin & Subash Sasidharan, 2010. "Heterogeneous MNC Subsidiaries and Technological Spillovers: Explaining Positive and Negative Effects in India," Working Papers, Madras School of Economics,Chennai,India 2010-053, Madras School of Economics,Chennai,India.
  10. Suyanto & Salim, Ruhul A. & Bloch, Harry, 2009. "Does Foreign Direct Investment Lead to Productivity Spillovers? Firm Level Evidence from Indonesia," World Development, Elsevier, Elsevier, vol. 37(12), pages 1861-1876, December.
  11. Zhang, Haiyang & Sonobe, Tetsushi, 2010. "An inquiry into the development of science and technology parks in China," Economics Discussion Papers 2010-26, Kiel Institute for the World Economy.

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