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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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Author Info
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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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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Related research
Keywords: Multinational Enterprises; Innovation; R&D collaboration; Science and Technology Institutions;

Find related papers by JEL classification:
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  3. Mansfield, Edwin, 1980. "Basic Research and Productivity Increase in Manufacturing," American Economic Review, American Economic Association, vol. 70(5), pages 863-73, December. [Downloadable!] (restricted)
  4. Steven Globerman & Daniel Shapiro, 2003. "Governance infrastructure and US foreign direct investment," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 34(1), pages 19-39, January. [Downloadable!] (restricted)
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  5. Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August. [Downloadable!] (restricted)
  6. James D. Adams, 2001. "Comparative Localization of Academic and Industrial Spillovers," NBER Working Papers 8292, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March. [Downloadable!]
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  8. 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 Journals, vol. 30(3), pages 513-532, September. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
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