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Regional innovation and the retention of foreign direct investment: a place-based approach

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  • Ryan W. Tang
  • Andrew Beer

Abstract

The relationship between regional innovation and foreign direct investment (FDI) has been extensively examined, but the impact of regional innovation on FDI retention has received scant attention. Drawing on the logic of place-based approaches, the paper investigates this impact by conducting survival analyses on data collected across 31 provinces of China. We find that regional technician supply (RTS) and regional intellectual property flexibility (RIPF) help regions retain foreign ventures. However, RTS is less likely to retain the foreign investments of multinational enterprises with large research and development expenditure, while RIPF is more likely to retain them. Theoretical and policy implications are discussed.

Suggested Citation

  • Ryan W. Tang & Andrew Beer, 2022. "Regional innovation and the retention of foreign direct investment: a place-based approach," Regional Studies, Taylor & Francis Journals, vol. 56(10), pages 1757-1770, October.
  • Handle: RePEc:taf:regstd:v:56:y:2022:i:10:p:1757-1770
    DOI: 10.1080/00343404.2021.2006173
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    Cited by:

    1. Tang, Ryan W. & Yang, Jing Yu (Gracy), 2024. "Diversity in foreign direct investment and environmental innovation of emerging market firms: The effect of ownership-conveyed institutional logics," Journal of Business Research, Elsevier, vol. 172(C).
    2. Wang, Zheng-Xin & Tang, Bao-Xing & Yan, Xiang-Wu, 2024. "The impact of administrative boundaries on foreign direct investments in China's Yangtze River Delta region," China Economic Review, Elsevier, vol. 85(C).

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