FDI spillover effects on innovation activities of knowledge using and knowledge creating firms: Evidence from an emerging economy

Vujanović, Nina; Radošević, Slavo; Stojčić, Nebojša; Hisarcıklılar, Mehtap; Hashi, Iraj

doi:10.1016/j.technovation.2022.102512

Cited by 45 publications

(19 citation statements)

References 71 publications

(48 reference statements)

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“…Despite showing lower technical efficiency levels, tech firms in other categories also gain advantages from FDI through their ability to adopt new technologies. Similarly, Vujanović et al [26] analysed the influence of FDI spillovers on the different stages of the innovation process, specifically for firms that utilize and generate knowledge in a developing European economy. The results suggest that in developing economies, innovation is more likely to involve copying rather than developing new products.…”

Section: Introductionmentioning

confidence: 99%

Does FDI foster technological innovations? Empirical evidence from BRICS economies

et al. 2023

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The idea behind the spillover effect of FDI on economic growth is based on the idea that multinational companies can bring technological innovation and rich knowledge to host countries. Therefore, FDI plays a vital role in technological innovations. This study aims to investigate the impact of foreign direct investment (FDI) on the technological innovation of BRICS countries from 2000 to 2020. This study uses the latest econometric techniques, such as the cross-sectional dependence (CD) test, second-generation unit root tests, panel cointegration tests and the Dumitrescu-Hurlin causality test. For long-run run estimation, this study uses the augmented mean group (AMG) panel estimator and the common correlated effects mean group (CCEMG) estimator for empirical analysis. The findings of the study show that foreign direct investment (FDI), trade openness, economic growth, and research & development expenditure positively impact technological innovation in BRICS countries. Also, the model’s long-term causality and lagged error correction term (ECT) are significantly negative. Suggested policy measures will be helpful for BRICS economies in boosting technology innovation through FDI.

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Section: Introductionmentioning

confidence: 99%

Does FDI foster technological innovations? Empirical evidence from BRICS economies

et al. 2023

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“…Driven by expanding outward FDI, the US multinational firms are more likely to export to their foreign affiliates, thus helping to balance the related-party trade. In addition, FDI, as the important channel of international technology spillovers and transfers, potentially helps industries in host countries catch up with the international technology frontier [57][58][59][60][61]. For instance, in 2016, General Electric Company (GE) invested 11 million dollars to open a digital innovation workshop in Shanghai aimed at supporting local digital industrial innovation and aggregating ecosystem resources to collaborate with customers.…”

Section: Hypothesis 2a (H2a) Imported Intermediate Input Mediates The...mentioning

confidence: 99%

Does Digital Transformation in Manufacturing Affect Trade Imbalances? Evidence from US–China Trade

Lei

2022

Sustainability

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In the new era of the Fourth Industrial Revolution, digitalization has progressively transformed manufacturing and further affected the balance in international trade patterns. This study assesses whether and how the digital transformation in manufacturing contributes to trade imbalances. Using detailed industry-level data from the US, this study constructs an integrated evaluation to measure the level of digital transformation in manufacturing and investigates the ways in which digital transformation in manufacturing affects the US–China trade imbalance. Empirical results show that the US digital transformation in manufacturing is positively associated with the US–China total trade imbalance, which in turn is negatively associated with their related-party trade imbalance. The further analysis presents a moderated mediation model that includes the US-imported intermediate input from China (mediator for the US–China total trade imbalance), foreign direct investment in China by the US multinationals (mediator for the US–China related-party trade imbalance), and Chinese important manufacturing policy (moderator) simultaneously. The results reveal that the Chinese important manufacturing policy moderates the mediation process and the moderated mediation effect is stronger for the industries which are not involved with this policy. Our findings are informative for developing digital transformation strategies for both manufacturing firms and government authorities.

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“…They wish to maximize FDI-related domestic learning externalities that raises labor productivity and organizational efficiency, and that may open new sectors in the domestic economy (e.g. Lu et al, 2017;Tao and Wang, 1998;Amighini et al, 2017;Vujanović et al, 2022), or may increase domestic wage incomes (e.g. Setzler and Tintelnot, 2019).…”

Section: Inward Fdi Economic Mass and Knowledge Capitalmentioning

confidence: 99%

A Micro-Macro Model of Foreign Direct Investment: Knowledge-Based Gravity Forces, Self-selection and Third-Country Effects

Kox¹

2022

SSRN Journal

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FDI spillover effects on innovation activities of knowledge using and knowledge creating firms: Evidence from an emerging economy

Cited by 45 publications

References 71 publications

Does FDI foster technological innovations? Empirical evidence from BRICS economies

Does FDI foster technological innovations? Empirical evidence from BRICS economies

Does Digital Transformation in Manufacturing Affect Trade Imbalances? Evidence from US–China Trade

A Micro-Macro Model of Foreign Direct Investment: Knowledge-Based Gravity Forces, Self-selection and Third-Country Effects

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