Effects of Outward FDI on Firm's Innovation Activities and Financial Performance: The Case of Korea

Abstract

This study investigates the role of Korean investors' outward foreign direct investment (OFDI) in the U.S. as a conduit for knowledge spillovers. Specifically, we focus on the impact of M&As and patent acquisitions on the innovation activities of acquiring firms, and the subsequent financial performance of both the acquirers and their domestic partners within supply chains. The results of empirical analyses offer positive evidence in this regard.

Keywords: Outward FDI, patent, spillovers, M&As