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

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  • 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.

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File URL: http://www.merit.unu.edu/publications/wppdf/2007/wp2007-030.pdf
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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 030.

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Date of creation: 2007
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Handle: RePEc:unm:unumer:2007030

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Related research

Keywords: Foreign Direct Investment; FDI; Foreign-owned Affiliates; Industrial Policy; Innovation Policy;

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  1. Ana Tavares, 2002. "Multinational Subsidiary Evolution and Public Policy: Two Tales from the European Periphery," Journal of Industry, Competition and Trade, Springer, vol. 2(3), pages 195-213, September.
  2. Robert Pearce, 2001. "Multinationals and Industrialisation: The Bases of 'Inward Investment' Policy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 51-73.
  3. Gabor Hunya, 2004. "Manufacturing FDI in New EU Member States - Foreign Penetration and Location Shifts between 1998 and 2002," wiiw Research Reports 311, The Vienna Institute for International Economic Studies, wiiw.
  4. Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.
  5. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
  6. John H Dunning, 2003. "Some antecedents of internalization theory," Journal of International Business Studies, Palgrave Macmillan, vol. 34(2), pages 108-115, March.
  7. Nicolai Juul Foss & Torben Pedersen, 2004. "Organizing knowledge processes in the multinational corporation: an introduction," Journal of International Business Studies, Palgrave Macmillan, vol. 35(5), pages 340-349, September.
  8. Ulf Holm & Anders Malmberg & Orjan S–lvell, 2003. "Subsidiary impact on host-country economies--the case of foreign-owned subsidiaries attracting investment into sweden," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 389-408, October.
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