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R&D and technology spillovers via FDI: Innovation and absorptive capacity

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  • Yuko Kinoshita

Abstract

Two faces of R&D (innovation and learning) and technology spillovers from FDI (foreign direct investment) on a firm's productivity growth are examined in this paper. Using firm-level panel data on Czech manufacturing firms between 1995 and 1998, I find that: First, the learning effect of R&D is far more important than the innovative effect in explaining the productivity growth of a firm. Second, there is no evidence of technology spillovers to local firms from having a foreign joint venture partner. Third, positive spillovers from FDI are found in electrical machinery and radio & TV sectors, which are also active investors in innovative R&D.

Suggested Citation

  • Yuko Kinoshita, 2000. "R&D and technology spillovers via FDI: Innovation and absorptive capacity," CERGE-EI Working Papers wp163, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp163
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