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Technology, Market Characteristics and Spillovers

In: Foreign Direct Investment

Author

Listed:
  • Magnus Blomström
  • Ari Kokko
  • Mario Zejan

Abstract

There are numerous case studies to suggest that technology spillovers from foreign direct investment may provide important benefits for the host countries of multinational corporations (MNCs) (see Chapter 8). The technology and productivity of local firms may improve as foreign firms enter the market and demonstrate new technologies, provide technical assistance to their local suppliers and customers, and train workers and managers who may later be employed by local firms. The competitive pressure exerted by the foreign affiliates may also force the local firms to operate more efficiently and introduce new technologies earlier than would otherwise have been the case.

Suggested Citation

  • Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Technology, Market Characteristics and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 10, pages 160-176, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59861-4_10
    DOI: 10.1057/9780230598614_10
    as

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