Papers in Evolutionary Economic Geography

May 10, 2018

# 18.20 Heterogeneous Foreign Direct Investment and Local Innovation in Italian Provinces

Filed under: 2018 — Tags: , , , — T.Broekel @ 12:24 pm

Andrea Ascani & Pierre-Alexandre Balland & Andrea Morrison

pdf

Abstract: Locations all over the world compete to attract Foreign Direct Investment (FDI) in order to access knowledge, technology, and boost economic development. Although the literature shows a positive impact of FDI, little is known about (1) its effect on neighbouring regions and (2) which type of FDI generate relevant effects. To fill this gap, we investigate the FDI-innovation relationship in Italian provinces. By adopting the Pavitt taxonomy of manufacturing sectors, we suggest that only specific categories of FDI benefit local economies, whilst other types may produce negative outcomes. The evidence on the spatial implications of FDI remains limited.

Advertisements

Blog at WordPress.com.

%d bloggers like this: