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A New Nexus Between Foreign Direct Investment, Industrial and Innovation Policies

Author

Listed:
  • Costa, Ionara

    (UNU-MERIT)

  • Filippov, Sergey

    (UNU-MERIT)

Abstract

This paper deals with the interplay between foreign direct investment (FDI) and the industrial and innovation policies of host developing economies. It aims to redefine the nexus between these different, though yet strongly interconnected policy areas, by bringing the affiliates of multinational corporations already established in a host economy to the first level of analysis. It argues that host country governments should concentrate on enhancing innovativeness and development of existing foreign-owned affiliates, instead of striving to attract higher volumes of FDI inflows.

Suggested Citation

  • Costa, Ionara & Filippov, Sergey, 2007. "A New Nexus Between Foreign Direct Investment, Industrial and Innovation Policies," MERIT Working Papers 2007-030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2007030
    as

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    File URL: https://www.merit.unu.edu/publications/wppdf/2007/wp2007-030.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sergey Filippov & Kálmán Kalotay, 2009. "New Europe’s Promise for Life Sciences," Chapters, in: Wilfred Dolfsma & Geert Duysters & Ionara Costa (ed.), Multinationals and Emerging Economies, chapter 3, Edward Elgar Publishing.
    2. José Guimón* & Sergey Filippov, 2012. "Competing for High-quality FDI: Management Challenges for Investment Promotion Agencies," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 25-44, July.
    3. Ainura Uzagalieva & Evžen Kocenda & Antonio Menezes, 2012. "Technological Innovation in New EU Markets," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(5), pages 48-65, September.
    4. Costa, Ionara & Marin, Anabel, 2007. "Foreign-owned firms and technological capabilities in the Argentinean manufacturing industry," MERIT Working Papers 2007-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Andrzej Cieślik & Jan Jakub Michałek & Krzysztof Szczygielski & Jacek Lewkowicz & Jerzy Mycielski, 2021. "Foreign Ownership and Within-MNEs GVC Participation as Determinants of Innovation Activities: A CIS-Based Firm-Level Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(2), pages 189-211, June.

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    More about this item

    Keywords

    Foreign Direct Investment; FDI; Foreign-owned Affiliates; Industrial Policy; Innovation Policy;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F29 - International Economics - - International Factor Movements and International Business - - - Other
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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