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Policies to Encourage Inflows of Technology through Foreign Multinationals

In: Foreign Direct Investment

Author

Listed:
  • Magnus Blomström
  • Ari Kokko
  • Mario Zejan

Abstract

The debate on the role of government policies for economic performance has, in recent years, turned from discussing the choice between free markets and government intervention to asking what types of intervention are good or bad. One reason is that almost all governments, irrespective of their political orientation, have chosen to play an active role in their economy (see, for example, Bardhan, 1990). However, the definition of successful intervention is still disputed, although an important lesson from the recent experience of several Asian economies seems to be that governments should make use of market forces in their efforts to influence the direction and character of economic growth: markets and competition need to be retained to discourage wasteful use of resources and to encourage learning and technical advances.

Suggested Citation

  • Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Policies to Encourage Inflows of Technology through Foreign Multinationals," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 13, pages 203-220, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-59861-4_13
    DOI: 10.1057/9780230598614_13
    as

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    References listed on IDEAS

    as
    1. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Technology, Market Characteristics and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 10, pages 160-176, Palgrave Macmillan.
    2. repec:bla:scandj:v:92:y:1990:i:3:p:487-500 is not listed on IDEAS
    3. Wang, Jian-Ye & Blomstrom, Magnus, 1992. "Foreign investment and technology transfer : A simple model," European Economic Review, Elsevier, vol. 36(1), pages 137-155, January.
    4. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Host Country Competition, Labour Skills, and Technology Transfer by Multinationals," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 14, pages 221-231, Palgrave Macmillan.
    5. repec:bla:econom:v:41:y:1974:i:162:p:176-93 is not listed on IDEAS
    6. Bardhan, Pranab, 1990. "Symposium on the State and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 3-7, Summer.
    7. Steven Globerman, 1979. "Foreign Direct Investment and `Spillover' Efficiency Benefits in Canadian Manufacturing Industries," Canadian Journal of Economics, Canadian Economics Association, vol. 12(1), pages 42-56, February.
    8. Homi Katrak, 1991. "Market Rivalry, Government Policies and Multinational Enterprise in Developing Countries," Palgrave Macmillan Books, in: Peter J. Buckley & Jeremy Clegg (ed.), Multinational Enterprises in Less Developed Countries, chapter 5, pages 92-110, Palgrave Macmillan.
    9. Robert Summers & Alan Heston, 1988. "A New Set Of International Comparisons Of Real Product And Price Levels Estimates For 130 Countries, 1950–1985," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(1), pages 1-25, March.
    10. 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.
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    More about this item

    Keywords

    Foreign Direct Investment; Host Country; Technology Transfer; Labour Skill; Technology Import;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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