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Vplyv priamych zahraničných investícií na inovačnú činnosť firiem
[The Impact of Foreign Direct Investment on Firms´ Innovation Activities]

Author

Listed:
  • Anetta Čaplánová
  • Rudolf Sivák
  • John Hudson

Abstract

We analyse regional spill-over effects from FDI on innovation activities of domestic firms in Eastern European and Asian transition and post-transition countries. The analysis is carried out using the World Bank 2009 Enterprise survey. We look also at the impact of FDI on innovation activities of domestic firms at regional level. We find the evidence for a non-linear impact of foreign firms on innovation. An increasing regional foreign presence at first reduces innovation activities and then beyond a certain point increases it. This is consistent with the literature which suggests that either effect may be plausible. Foreign owned firms are more likely to engage in product innovation and license products from other firms. We also find the evidence for the positive statistically significant impact of access to bank credit, infrastructure, size of the firm, being part of a group of firms and competitive pressure on innovation activities of firms.

Suggested Citation

  • Anetta Čaplánová & Rudolf Sivák & John Hudson, 2012. "Vplyv priamych zahraničných investícií na inovačnú činnosť firiem [The Impact of Foreign Direct Investment on Firms´ Innovation Activities]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(6), pages 764-779.
    • Handle: RePEc:prg:jnlpol:v:2012:y:2012:i:6:id:876:p:764-779
    DOI: 10.18267/j.polek.876
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    More about this item

    Keywords

    innovation; forms of innovation; FDI spill-over effects; knowledge diffusion; World Bank Enterprise Survey;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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