R&D and Technology Spillovers Via FDI: Innovation and Absorptive Capacity

30 Pages Posted: 29 Jan 2001

See all articles by Yuko Kinoshita

Yuko Kinoshita

International Monetary Fund (IMF); University of Michigan, William Davidson Institute; Centre for Economic Policy Research (CEPR)

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Date Written: November 2000

Abstract

Two faces of R&D (innovation and learning) and technology spillovers from FDI (foreign direct investment) on a firm's productivity growth are examined in this paper. Using firm-level panel data on Czech manufacturing firms between 1995 and 1998, I find that: (i) the learning effect of R&D is far more important than the innovative effect in explaining the productivity growth of a firm, (ii) there is no evidence of technology spillovers to local firms from having a foreign joint venture partner, (iii) positive spillovers from FDI are found in electrical machinery and radio & TV sectors, which are also active investors in innovative R&D.

Suggested Citation

Kinoshita, Yuko, R&D and Technology Spillovers Via FDI: Innovation and Absorptive Capacity (November 2000). William Davidson Institute Working Paper No. 349. Available at SSRN: https://ssrn.com/abstract=258194 or http://dx.doi.org/10.2139/ssrn.258194

Yuko Kinoshita (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street N.W.
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University of Michigan, William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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