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Human Capital Intensity in Technology-Based Firms Located in Portugal: Do Foreign Multinationals Make a Difference?

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Author Info

  • Ana Teresa Tavares

    ()
    (CEMPRE, Faculdade de Economia, Universidade do Porto)

  • Aurora A. C. Teixeira

    ()
    (CEMPRE, Faculdade de Economia, Universidade do Porto)

Abstract

This paper contributes to the scarce empirical literature on the impact of foreign ownership on human capital intensity. New evidence is provided, based on a comprehensive, large-scale survey of technology-based firms located in Portugal. Using two alternatives measures of human capital (one based on skills, another on education), the key findings are that: (1) foreign ownership directly (and significantly) impacts on firms general human capital (education); (2) foreign ownership indirectly (and significantly) impacts on firms specific human capital (skills); (3) the total impact of foreign ownership on firms’ human capital intensity is higher for education- (general) than for skills- (specific) related human capital intensity. Other findings are that younger and smaller firms tend to be more human capital intensive, and that export patterns are not significantly related to human capital intensity. Giving the critical importance of both FDI and human capital development for an economy like Portugal (lagging behind in terms of human capital stock, and seeming to have lost part of its attractiveness as an FDI location), the paper discusses related policy implications.

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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 187.

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Length: 26 pages
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:por:fepwps:187

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Keywords: Foreign direct investment (FDI); multinational enterprises (MNEs); human capital; education; technology-based firms (TBFs).;

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Cited by:
  1. Li Shu & Aurora A.C. Teixeira, 2010. "The level of human capital in innovative firms located in China. Is foreign capital relevant?," FEP Working Papers 391, Universidade do Porto, Faculdade de Economia do Porto.
  2. António B. Moniz, 2008. "The transformation of work? A quantitative evaluation of changes in work in Portugal," IET Working Papers Series 07/2008, Universidade Nova de Lisboa, IET/CESNOVA-Research on Enterprise and Work Innovation, Faculty of Science and Technology.

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