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Foreign Direct Investment and Science and Technology Infrastructure in Small Countries: Evidence from Finland and the Netherlands

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  • Berghäll, Elina
  • vanBeers, Cees
  • Poot, Tom

Abstract

This study investigates the links between foreign firms and the public Science and Technology (S&T) institutions in Finland and the Netherlands. By estimating models on data from Community Innovation Surveys, we find for the Netherlands that foreign firms reveal a significantly lower probability to cooperate with domestic S&T institutions than domestic firms, which can be expected a priori. In Finland this negative bias is not present due to Finnish innovation policies in which R&D collaboration is an explicit requirement. If innovating foreign firms in the Netherlands produce innovations based on ideas originating in the firm, they do not co-operate with domestic S&T institutions while in Finland these co-operation schemes do exist. Finnish S&T institutions fit in the R&D strategies of MNEs while S&T institutions in the Netherlands do not.

Suggested Citation

  • Berghäll, Elina & vanBeers, Cees & Poot, Tom, 2004. "Foreign Direct Investment and Science and Technology Infrastructure in Small Countries: Evidence from Finland and the Netherlands," Discussion Papers 357, VATT Institute for Economic Research.
    • Handle: RePEc:fer:dpaper:357
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    References listed on IDEAS

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