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Does FDI Work as a Channel for R&D Spillovers? Evidence Based on Swedish Data

Author

Listed:
  • Braconier, Henrik

    (The Research Institute of Industrial Economics)

  • Ekholm, Karolina

    () (Stockholm School of Economics)

  • Midelfart Knarvik, Karen Helene

    () (Norwegian School of Economics and Business Administration)

Abstract

Multinational enterprises (MNEs) are important in transmitting technology across national borders. Not only do they allow for transfer of technology within the firm, but it is also believed that they are important channels for international R&D spillovers as well. This paper analyzes empirically whether inward and outward foreign direct investment (FDI) work as channels for international R&D spillovers. We utilize firm-level as well as industry-level data for Swedish manufacturing in the analysis. We find no evidence of FDI-related R&D spillovers - neither at the firm-level nor at the industry-level in Swedish manufacturing. The only variable that consistently affects total factor productivity is own investment in R&D.

Suggested Citation

  • Braconier, Henrik & Ekholm, Karolina & Midelfart Knarvik, Karen Helene, 2001. "Does FDI Work as a Channel for R&D Spillovers? Evidence Based on Swedish Data," Working Paper Series 553, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:0553
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cassiman, Bruno & Veugelers, Reinhilde, 1999. "Importance of International Linkages for Local Know-How Flows: Some Econometric Evidence From Belgium," CEPR Discussion Papers 2337, C.E.P.R. Discussion Papers.
    2. Jürgen Bitzer & Holger Görg, 2009. "Foreign Direct Investment, Competition and Industry Performance," The World Economy, Wiley Blackwell, vol. 32(2), pages 221-233, February.
    3. Giorgio Barba Navaretti & Davide Castellani & Anne-Célia Disdier, 2006. "How Does Investing in Cheap Labour Countries Affect Performance at Home? France and Italy," Development Working Papers 215, Centro Studi Luca d'Agliano, University of Milano.
    4. Davide Castellani, 2002. "Firms' Technological Trajectories and the Creation of Foreign Subsidiaries," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(3), pages 359-371.
    5. Narula, Rajneesh & Marin, Anabel, 2003. "FDI spillovers, absorptive capacities and human capital development: evidence from Argentina," Research Memorandum 018, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    6. Narula, Rajneesh & Marin, Anabel, 2005. "Exploring the relationship between direct and indirect spillovers from FDI in Argentina," Research Memorandum 024, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    7. Bye Brita & Faehn Taran & Grünfeld Leo A., 2011. "Growth and Innovation Policy in a Small, Open Economy: Should You Stimulate Domestic R&D or Exports?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-41, July.
    8. Ejermo, Olof, 2004. "Productivity Spillovers of R&D in Sweden," Working Paper Series in Economics and Institutions of Innovation 15, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    9. Klaus Friesenbichler, 2006. "International Outsourcing of Research and the Dynamics of Research Work in Austria," WIFO Monatsberichte (monthly reports), WIFO, vol. 79(1), pages 41-51, January.
    10. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2010. "Welchen Einfluss hat die Anwesenheit von ausländischen und multinationalen Unternehmungen auf die deutschen Exporte?," Working Papers CIE 31, Paderborn University, CIE Center for International Economics.

    More about this item

    Keywords

    Multinational enterprises; Foreign direct investment; Spillovers; Research and development;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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