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

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Abstract: Countries and regions all over the world compete to attract Foreign Direct Investment (FDI) as a way to access knowledge, technology, and boost economic development. Although the literature shows a positive impact of FDI on local economies, little is known about (1) the impact on innovation of neighbouring regions and the type of FDI that generates the strongest learning effects. To fill this gap, this article investigates the relationship between FDI and the innovation capacity of Italian provinces (NUTS3). In order to capture the heterogeneity of FDI in terms of knowledge inputs, we apply the Pavitt categorisation of manufacturing sectors to inward FDI within Italian provinces, thus accounting for the nature and sources of knowledge in different sectors where foreign multinationals are active. Our results suggest that only some specific typologies of inward FDI, such as that in “Science based” sectors and to a lesser extent in “Specialised supplier” activities, benefit local economies. Nevertheless, other types of inward FDI can produce possible negative outcomes in terms of local innovation. We detect only weak evidence on the spatial implications of inward FDI

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February 3, 2016

# 16.02 Nothing is in the air

Filed under: 2016 — Tags: , , , , , , — mattehartog @ 6:37 pm

Rune Dahl Fitjar and Andrés Rodríguez-Pose

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It has often been argued that ‘there is something in the air’ which makes firms in high-density environments – such as cities or clusters – more innovative. The co-location of firms facilitates the emergence of serendipity and casual encounters which promote innovation in firms. We assess this hypothesis using data from a survey of Norwegian firms engaged in innovation partnerships. The results indicate that there may be ‘much less in the air’ than is generally assumed in the literature. The relationships conducive to innovation by Norwegian firms emerged as a consequence of purpose-built searches and had little to do with chance, serendipity, or ‘being there’.

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