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Foreign Direct Investment and International R&D Spillovers in OECD Countries Revisited

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  • Suyi Kim
  • Jungsoo Park

Abstract

We test whether foreign direct investment (FDI) is an important channel of international R&D spillovers between OECD countries. The results show that R&D spillovers through inward FDI had considerable positive effects on total factor productivity (TFP) in the 1990s, but not in the 2000s. By contrast, R&D spillovers through outward FDI had positive influence on TFP in the 2000s, but not in the 1990s. The contributions of foreign R&D are more related to FDI flows than to the size of the host countries. Finally, the countries benefiting from the R&D spillovers drastically differ from the countries contributing to the R&D spillovers.

Suggested Citation

  • Suyi Kim & Jungsoo Park, 2017. "Foreign Direct Investment and International R&D Spillovers in OECD Countries Revisited," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 173(3), pages 431-453, September.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201709)173:3_431:fdiair_2.0.tx_2-1
    DOI: 10.1628/093245616X14664894246884
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    Cited by:

    1. Le, Thanh & Pham, Hanh & Mai, Sau & Vu, Ngoc, 2022. "Frontier academic research, industrial R&D and technological progress: The case of OECD countries," Technovation, Elsevier, vol. 114(C).
    2. Dirk Dohse & Rajeev K. Goel & Michael A. Nelson, 2019. "What induces firms to license foreign technologies? International survey evidence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(7), pages 799-814, October.
    3. Jianping Liu & Kai Lu & Shixiong Cheng, 2018. "International R&D Spillovers and Innovation Efficiency," Sustainability, MDPI, vol. 10(11), pages 1-23, October.
    4. Mengzhen Wang & Baekryul Choi, 2023. "An Analysis of the Impact of International R&D Spillovers and Technology Innovation in China," Sustainability, MDPI, vol. 15(3), pages 1-25, January.
    5. Al Amin Biswas & A. H. M. Shahriar & Mohammad Jahangir Alam & Ruhul Kuddus & Uttam Golder & Mita Rani Paul, 2023. "Rethinking FDI Policy in Bangladesh: An Asymmetric Approach to Globalization, Population, and Trade," International Journal of Economics and Financial Issues, Econjournals, vol. 13(6), pages 168-176, November.

    More about this item

    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • 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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