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Uneven geographical distribution of R%D-related foreign direct investment in Latin America: uncovering the paradox of national development

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  • Carlos Loaiza Alamo

Abstract

R&D-related FDI can bring substantial benefits to host territories, but it may also reinforce divergences in development, leaving some areas economically behind. In this study, I analyse the spatial distribution of R&D-related FDI as a proxy of innovation in Latin America, both between and within countries, using manufacturing FDI activities as a benchmark. The study uses the fDi markets database to identify locations of R&D greenfield investments in 14 Latin American countries over the period of 2007-2017. The findings highlight the paradox between the benefits that host cities receive from R&D-related FDI and the uncertain future for no-host territories. Balanced regional development policies are critical to facilitate innovation promotion and address the broader need for a more equitable distribution of the benefits of such initiatives across the entire nation.

Suggested Citation

  • Carlos Loaiza Alamo, 2024. "Uneven geographical distribution of R%D-related foreign direct investment in Latin America: uncovering the paradox of national development," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 15(4), pages 347-369.
    • Handle: RePEc:ids:ijtlid:v:15:y:2024:i:4:p:347-369
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