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The Role of Foreign Direct Investments on Small Countries' Competitive and Technological Position

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Author Info
Cees vanBeers
Abstract

This KNOGG report analyses the role of Transnational Corporations in the small European countries and synthesises their importance in generating spillovers. For dissemination of technology it is important to build and/or increase the efficiency of national innovation systems and strengthen the technological advantages of local firms to enable them to absorb successfully R&D from foreign TNCs. The location is of importance for TNCs that concentrate more on development than on research activities. Finland is the only one of the KNOGG countries that actively promotes S&T policies by enforcing the domestic national innovation system. This makes the country an attractive place for high technology parts of inward FDI. Although Ireland, the Netherlands and Hungary also try to attract FDI with connections to their domestic economy, there are often not linkages to the national innovation system. In Greece and Slovenia some fiscal measures of technology spillovers exist but these are not part of explicit S&T policies.

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File URL: http://www.vatt.fi/publications/latestPublications/publication/Publication_1345_id/518
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Paper provided by Government Institute for Economic Research Finland (VATT) in its series Research Reports with number 100.

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Date of creation: 08 Sep 2003
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Handle: RePEc:fer:resrep:100

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Related research
Keywords: National innovation system; FDI; TNC; spillover; knowledge;

Find related papers by JEL classification:
F20 - International Economics - - International Factor Movements and International Business - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity

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This page was last updated on 2010-1-6.


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