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Foreign Direct Investment and Science and Technology Infrastructure in Small Countries: Evidence from Finland and the Netherlands

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  • Elina Berghäll
  • Cees vanBeers
  • Tom Poot

Abstract

This study investigates the links between foreign firms and the public Science and Technology (S&T) institutions in Finland and the Netherlands. By estimating models on data from Community Innovation Surveys, we find for the Netherlands that foreign firms reveal a significantly lower probability to cooperate with domestic S&T institutions than domestic firms, which can be expected a priori. In Finland this negative bias is not present due to Finnish innovation policies in which R&D collaboration is an explicit requirement. If innovating foreign firms in the Netherlands produce innovations based on ideas originating in the firm, they do not co-operate with domestic S&T institutions while in Finland these co-operation schemes do exist. Finnish S&T institutions fit in the R&D strategies of MNEs while S&T institutions in the Netherlands do not.

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Bibliographic Info

Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 357.

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Date of creation: 31 Dec 2004
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Handle: RePEc:fer:dpaper:357

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Keywords: Multinational Enterprises; Innovation; R&D collaboration; Science and Technology Institutions;

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  1. Henderson, R. & Jaffe, A.B.: Tratenberg, M., 1995. "Universities as a Source of Commercial Technology: A Detailed Analysis of University Patenting 1965-1988," Papers 09-95, Tel Aviv.
  2. Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," EIJS Working Paper Series 168, The European Institute of Japanese Studies.
  3. Steven Globerman & Daniel Shapiro, 2003. "Governance infrastructure and US foreign direct investment," Journal of International Business Studies, Palgrave Macmillan, vol. 34(1), pages 19-39, January.
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  7. Francesco Daveri & Olmo Silva, 2004. "Not only Nokia: what Finland tells us about "new economy" growth," Economic Policy, CEPR & CES & MSH, vol. 19(38), pages 117-163, 04.
  8. James D. Adams, 2001. "Comparative Localization of Academic and Industrial Spillovers," NBER Working Papers 8292, National Bureau of Economic Research, Inc.
  9. Mansfield, Edwin, 1980. "Basic Research and Productivity Increase in Manufacturing," American Economic Review, American Economic Association, vol. 70(5), pages 863-73, December.
  10. Steven Globerman & Daniel M Shapiro, 1999. "The Impact of Government Policies on Foreign Direct Investment: The Canadian Experience," Journal of International Business Studies, Palgrave Macmillan, vol. 30(3), pages 513-532, September.
  11. Spanos,Aris, 1986. "Statistical Foundations of Econometric Modelling," Cambridge Books, Cambridge University Press, number 9780521269124.
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