IDEAS home Printed from https://ideas.repec.org/p/ucm/ppaper/03-07.html
   My bibliography  Save this paper

Government Strategies to Attract R&D-Intensive FDI

Author

Listed:
  • José Guimón

    (Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales (ICEI))

Abstract

Competition among countries and regions to attract the R&D activities of multinational enterprises has increased substantially during the last years, but the strategies used by governments in this competition remain largely unexplored. This paper proposes a taxonomy of the main policy instruments available to stimulate inward R&D-intensive FDI and presents the results of a comparative case-study of two European countries: Spain and Ireland. The main conclusion is that an efficient promotion of R&D-intensive FDI calls for a closer coordination between innovation policy and inward investment promotion, which are two policy areas that have traditionally operated rather independently from each other. In addition, inward investment agencies targeting R&D-intensive FDI are advised to reconfigure the scope of services they provide by placing more emphasis on after-care, since R&D-intensive FDI tends to be evolutionary rather than greenfield.

Suggested Citation

  • José Guimón, 2007. "Government Strategies to Attract R&D-Intensive FDI," Policy Papers del Instituto Complutense de Estudios Internacionales 07-03, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    • Handle: RePEc:ucm:ppaper:03-07
    as

    Download full text from publisher

    File URL: https://eprints.ucm.es/id/eprint/11864/1/PP03-07.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ram Mudambi, 1999. "Multinational Investment Attraction: Principal-Agent Considerations," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 65-79.
    2. Bas, Christian Le & Sierra, Christophe, 2002. "'Location versus home country advantages' in R&D activities: some further results on multinationals' locational strategies," Research Policy, Elsevier, vol. 31(4), pages 589-609, May.
    3. Carlsson, Bo, 2006. "Internationalization of innovation systems: A survey of the literature," Research Policy, Elsevier, vol. 35(1), pages 56-67, February.
    4. repec:bla:econom:v:46:y:1979:i:182:p:187-96 is not listed on IDEAS
    5. Cantwell, John & Piscitello, Lucia, 2000. "Accumulating Technological Competence: Its Changing Impact on Corporate Diversification and Internationalization," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(1), pages 21-51, March.
    6. Gregory Tassey, 2007. "Tax incentives for innovation: time to restructure the R&E tax credit," The Journal of Technology Transfer, Springer, vol. 32(6), pages 605-615, December.
    7. Robert Atkinson, 2007. "Expanding the R&E tax credit to drive innovation, competitiveness and prosperity," The Journal of Technology Transfer, Springer, vol. 32(6), pages 617-628, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Guimón, 2009. "Government strategies to attract R&D-intensive FDI," The Journal of Technology Transfer, Springer, vol. 34(4), pages 364-379, August.
    2. Morero, Hernán, 2010. "Internacionalización, Tramas Productivas y Sistema Nacional de Innovación [Internationalization, Production Networks and National System of Innovation]," MPRA Paper 26964, University Library of Munich, Germany.
    3. Albert N. Link & John T. Scott, 2013. "Employment growth from public support of innovation in small firms," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 3, pages 41-64, Edward Elgar Publishing.
    4. Haibo Feng & Sheng Liu & Fei Xu, 2019. "China's VAT Reform and Its Effects on Enterprises' Tax Burden and Innovation," Working Papers hal-04066831, HAL.
    5. Tea Petrin & Dragana Radicic, 2023. "Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?," The Journal of Technology Transfer, Springer, vol. 48(1), pages 181-215, February.
    6. Rajneesh Narula & José Guimón, 2012. "The Role of Multinational Corporations in the National Innovation Systems of the EU New Member States," Chapters, in: Martin Heidenreich (ed.), Innovation and Institutional Embeddedness of Multinational Companies, chapter 13, Edward Elgar Publishing.
    7. Picci, Lucio & Savorelli, Luca, 2015. "The Inventor Balance and the Functional Specialization in Global Inventive Activities," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-20, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Christian Le Bas & Parimal Patel, 2007. "Related variety and regional growth in Italy," SPRU Working Paper Series 164, SPRU - Science Policy Research Unit, University of Sussex Business School.
    9. Dingqi Xue & Yili Ding & Lu Yu & Xinghua Deng, 2023. "The Impact of Green Institutional Pressure from Local Governments on Corporate Innovation: An Empirical Evidence from Foreign-Invested Enterprises in China," Sustainability, MDPI, vol. 15(15), pages 1-18, July.
    10. Feng, Haibo & Liu, Sheng & Xu, Fei, 2022. "China’s VAT reform, and Its Effects on Enterprises’ Tax Burden and Innovation," Umeå Economic Studies 1008, Umeå University, Department of Economics, revised 24 Oct 2024.
    11. Barry Bozeman & Albert N. Link, 2015. "Toward an assessment of impacts from US technology and innovation policies," Science and Public Policy, Oxford University Press, vol. 42(3), pages 369-376.
    12. Sara Amoroso & Bettina Müller, 2018. "The short-run effects of knowledge intensive greenfield FDI on new domestic entry," The Journal of Technology Transfer, Springer, vol. 43(3), pages 815-836, June.
    13. Gauselmann, Andrea, 2013. "R&D Co-operation in European Post-transition Economies," IWH Discussion Papers 4/2013, Halle Institute for Economic Research (IWH).
    14. Haibo Feng & Sheng Liu & Fei Xu, 2019. "China's VAT Reform and Its Effects on Enterprises' Tax Burden and Innovation," SciencePo Working papers Main hal-04066831, HAL.
    15. Morero, Hernan Alejandro, 2013. "Internacionalizacion y Sistema Nacional de Innovacion argentino: una perspectiva de tramas productivas. Los casos automotriz y siderurgico [Internationlization and argentinean National System of In," MPRA Paper 44409, University Library of Munich, Germany.
    16. Seiko Arai, 2016. "Absorptive Capability of Japanese and European MNCs: Balance between Autonomy and Control of R&D Subsidiaries in the US," GRIPS Discussion Papers 16-18, National Graduate Institute for Policy Studies.
    17. Christian Le Bas & Pari Patel, 2005. "Does internationalisation of technology determine technological diversification in large firms?," SPRU Working Paper Series 128, SPRU - Science Policy Research Unit, University of Sussex Business School.
    18. Belderbos, René & Leten, Bart & Suzuki, Shinya, 2023. "International R&D and MNCs' innovation performance: An integrated approach," Journal of International Management, Elsevier, vol. 29(6).
    19. Alkemade, Floortje & Heimeriks, Gaston & Schoen, Antoine & Villard, Lionel & Laurens, Patricia, 2015. "Tracking the internationalization of multinational corporate inventive activity: national and sectoral characteristics," Research Policy, Elsevier, vol. 44(9), pages 1763-1772.
    20. Yun Jeong Choi & Jinook Jeong, 2015. "Testing for the Ratchet Effect in the R&D Tax Credit," International Economic Journal, Taylor & Francis Journals, vol. 29(2), pages 327-342, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucm:ppaper:03-07. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Águeda González Abad (email available below). General contact details of provider: https://edirc.repec.org/data/ieucmes.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.