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Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter?

  • Teixeira, Aurora A.C.
  • Tavares-Lehmann, Ana Teresa

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. The key findings are that: (1) foreign ownership directly (and significantly) impacts a firm's general human capital (education); (2) foreign ownership indirectly (and significantly) impacts a firm's specific human capital (skills); (3) the total impact of foreign ownership on a firm's human capital intensity is higher for education- (general) than for skills- (specific) related human capital intensity. Giving the critical importance of both FDI and human capital development for an ‘intermediate’ 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. It is believed that our results and conclusions may be useful for other countries facing similar challenges.

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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 43 (2014)
Issue (Month): 4 ()
Pages: 737-748

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Handle: RePEc:eee:respol:v:43:y:2014:i:4:p:737-748
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