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The Role of Foreign Direct Investment and State Capture in Shaping Innovation Outcome in Russia

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  • Natalya Smith
  • Ekaterina Thomas

Abstract

This article explores the linkage between foreign direct investment, grand corruption (that is, state capture) and innovation in Russia's regions in between 1997 and 2010. The results indicate that during the period under investigation both foreign direct investment and state capture were the significant determinants of innovation outcome. What is also interesting is that a positive impact of state capture on innovation through foreign firms, and a negative impact—through exporting—was observed.

Suggested Citation

  • Natalya Smith & Ekaterina Thomas, 2015. "The Role of Foreign Direct Investment and State Capture in Shaping Innovation Outcome in Russia," Europe-Asia Studies, Taylor & Francis Journals, vol. 67(5), pages 777-808, May.
    • Handle: RePEc:taf:ceasxx:v:67:y:2015:i:5:p:777-808
    DOI: 10.1080/09668136.2015.1042430
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    Cited by:

    1. Bessonova, Evguenia & Gonchar, Ksenia, 2024. "How regional courts in Russia affected multinational decisions on affiliate size, entry and organization," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 74, pages 51-77.
    2. Mohammad, Shoeb & Yang, Jie & Butt, Irfan, 2024. "Does corruption have a sanding or greasing impact on innovation? Reconciling the contrasting perspectives through a systematic literature review," Research Policy, Elsevier, vol. 53(7).

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