IDEAS home Printed from https://ideas.repec.org/p/zbw/iwhdps/iwh-162.html
   My bibliography  Save this paper

The significance of FDI for innovation activities within domestic firms - The case of Central East European transition economies

Author

Listed:
  • Günther, Jutta

Abstract

Foreign direct investment is expected to play a significant role as a multiplier of modern production- and management-know-how in Central East European transition economies. The so-called technology-spillovers are explained through externalities or extra-marketlinkages. In practice they can take place via demonstration effects, labor mobility, supplier contacts, customer contacts or networking activities. However, the empirical study on the example of Hungarian industry shows that foreign owned and domestic firms - mainly due to their strong technological disparities - build virtually separate spheres within the industrial sector. Thus, technology-spillovers do hardly appear as an innovation-stimulating means for domestic companies.

Suggested Citation

  • Günther, Jutta, 2002. "The significance of FDI for innovation activities within domestic firms - The case of Central East European transition economies," IWH Discussion Papers 162/2002, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-162
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/77045/1/162.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Multinational Corporations and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 8, pages 101-133, Palgrave Macmillan.
    2. Gabor Hunya, 2000. "International Competitiveness Impacts of FDI in CEECs," wiiw Research Reports 268, The Vienna Institute for International Economic Studies, wiiw.
    3. Edwin Mansfield & Anthony Romeo, 1980. "Technology Transfer to Overseas Subsidiaries by U. S.-Based Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(4), pages 737-750.
    4. Peter Farkas, 2000. "The effects of foreign direct investment on R&D and innovation in Hungary," IWE Working Papers 108, Institute for World Economics - Centre for Economic and Regional Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Faiza Ali Dhar & Sumaira & Tasleem Ara Wani, 2017. "Role of FDI & Entrepreneurship in Fostering Economic Growth -A Review of Literature," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 8(3), pages 33-38, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    2. Veugelers, Reinhilde & Cassiman, Bruno, 2004. "Foreign subsidiaries as a channel of international technology diffusion: Some direct firm level evidence from Belgium," European Economic Review, Elsevier, vol. 48(2), pages 455-476, April.
    3. Klaus Desmet & Felipe Meza & Juan A. Rojas, 2008. "Foreign direct investment and spillovers: gradualism may be better," Canadian Journal of Economics, Canadian Economics Association, vol. 41(3), pages 926-953, August.
    4. Kugler, Maurice, 2006. "Spillovers from foreign direct investment: Within or between industries?," Journal of Development Economics, Elsevier, vol. 80(2), pages 444-477, August.
    5. Ausloos, Marcel & Eskandary, Ali & Kaur, Parmjit & Dhesi, Gurjeet, 2019. "Evidence for Gross Domestic Product growth time delay dependence over Foreign Direct Investment. A time-lag dependent correlation study," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 527(C).
    6. Miklos Szanyi & Ichiro Iwasaki & Peter Csizmadia & Miklos Illessy & Csaba Mako, 2009. "The concentric-circle model of FDI spilklover effects estimation using Hungarian panel data," IWE Working Papers 191, Institute for World Economics - Centre for Economic and Regional Studies.
    7. Hans Gersbach & Armin Schmutzler, 2011. "Foreign direct investment and R&D-offshoring," Oxford Economic Papers, Oxford University Press, vol. 63(1), pages 134-157, January.
    8. Morita, Hodaka & Nguyen, Xuan, 2021. "FDI and quality-enhancing technology spillovers," International Journal of Industrial Organization, Elsevier, vol. 79(C).
    9. Ulltveit-Moe, Karen Helene & Ekholm, Karolina & Braconier, Henrik, 2000. "Does FDI Work as a Channel for R&D Spillovers? Evidence Based on Swedish Data," CEPR Discussion Papers 2469, C.E.P.R. Discussion Papers.
    10. Almenar-Llongo, Vicent & Muñoz de Prat, Javier & Orero-Blat, Maria, 2021. "Qualitative analysis for joint ventures as an entry mode in foreign direct investment," Journal of Business Research, Elsevier, vol. 123(C), pages 324-332.
    11. Yao‐Yu Chih & Ruby P. Kishan & Andrew Ojede, 2022. "Be good to thy neighbours: A spatial analysis of foreign direct investment and economic growth in sub‐Saharan Africa," The World Economy, Wiley Blackwell, vol. 45(3), pages 657-701, March.
    12. Hallin, Christina & Holmström Lind, Christine, 2012. "Revisiting the external impact of MNCs: An empirical study of the mechanisms behind knowledge spillovers from MNC subsidiaries," International Business Review, Elsevier, vol. 21(2), pages 167-179.
    13. Veugelers, Reinhilde & Sanna-Randaccio, Francesca, 2002. "Multinational Knowledge Spillovers with Centralized versus Decentralized R&D: A Game Theoretic Approach," CEPR Discussion Papers 3151, C.E.P.R. Discussion Papers.
    14. Sotiris Blanas & Adnan Seric, 2017. "Knowledge Transfer and Intra-Firm Trade," Working Papers 178612931, Lancaster University Management School, Economics Department.
    15. Seda Köymen Özer & Selin Sayek Böke, 2017. "The Characteristics of Domestic Firms: Materializing Productivity Spillovers from FDI," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(11), pages 2562-2584, November.
    16. Sanjaya Malik, 2015. "Conditional technology spillovers from foreign direct investment: evidence from Indian manufacturing industries," Journal of Productivity Analysis, Springer, vol. 43(2), pages 183-198, April.
    17. Henrik Braconier & Fredrik Sjöholm, 1998. "National and international spillovers from R&D: Comparing a neoclassical and an endogenous growth approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 638-663, December.
    18. Agarwal, Natasha & Milner, Chris & Riaño, Alejandro, 2014. "Credit constraints and spillovers from foreign firms in China," Journal of Banking & Finance, Elsevier, vol. 48(C), pages 261-275.
    19. Kugler, Maurice, 2000. "The diffusion of externalities from foreign direct investment: theory ahead of measurement," Discussion Paper Series In Economics And Econometrics 23, Economics Division, School of Social Sciences, University of Southampton.
    20. Mohammad Sharif Karimi & Andrzej Cieslik, 2017. "Foreign Knowledge Spillovers and Total Factor Productivity Growth: Evidence from Four ASEAN Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(2), pages 267-299, Spring.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:iwhdps:iwh-162. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwhhhde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.