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Does FDI Work as a Channel for R&D Spillovers? Evidence Based on Swedish Data

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Author Info

  • Braconier, Henrik

    (The Research Institute of Industrial Economics)

  • Ekholm, Karolina

    ()
    (Stockholm School of Economics)

  • Midelfart Knarvik, Karen Helene

    ()
    (Norwegian School of Economics and Business Administration)

Abstract

Multinational enterprises (MNEs) are important in transmitting technology across national borders. Not only do they allow for transfer of technology within the firm, but it is also believed that they are important channels for international R&D spillovers as well. This paper analyzes empirically whether inward and outward foreign direct investment (FDI) work as channels for international R&D spillovers. We utilize firm-level as well as industry-level data for Swedish manufacturing in the analysis. We find no evidence of FDI-related R&D spillovers - neither at the firm-level nor at the industry-level in Swedish manufacturing. The only variable that consistently affects total factor productivity is own investment in R&D.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 553.

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Length: 27 pages
Date of creation: 02 May 2001
Date of revision:
Publication status: Forthcoming in Weltwirtschaftliches Archiv.
Handle: RePEc:hhs:iuiwop:0553

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
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Web page: http://www.ifn.se/
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Keywords: Multinational enterprises; Foreign direct investment; Spillovers; Research and development;

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References

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  1. Blomström, Magnus & Kokko, Ari, 1996. "Multinational Corporations and Spillovers," Working Paper Series in Economics and Finance 99, Stockholm School of Economics.
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Citations

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Cited by:
  1. Narula,Rajneesh & Marin,Anabel, 2003. "FDI spillovers, absorptive capacities and human capital development: evidence from Argentina," Research Memorandum 018, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  2. Barba Navaretti, Giorgio & Castellani, Davide & Disdier, Anne-Célia, 2006. "How Does Investing in Cheap Labour Countries Affect Performance at Home? France and Italy," CEPR Discussion Papers 5765, C.E.P.R. Discussion Papers.
  3. Davide Castellani, 2002. "Firms' Technological Trajectories and the Creation of Foreign Subsidiaries," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(3), pages 359-371.
  4. Ejermo, Olof, 2004. "Productivity Spillovers of R&D in Sweden," Working Paper Series in Economics and Institutions of Innovation 15, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  5. Cassiman, Bruno & Veugelers, Reinhilde, 1999. "Importance of International Linkages for Local Know-How Flows: Some Econometric Evidence From Belgium," CEPR Discussion Papers 2337, C.E.P.R. Discussion Papers.
  6. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2010. "Welchen Einfluss hat die Anwesenheit von ausländischen und multinationalen Unternehmungen auf die deutschen Exporte?," Working Papers CIE 31, University of Paderborn, CIE Center for International Economics.
  7. Narula ,Rajneesh & Marin ,Anabel, 2005. "Exploring the relationship between direct and indirect spillovers from FDI in Argentina," Research Memorandum 024, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).

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