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Heterogeneous foreign direct investment and local innovation in Italian Provinces

Ascani, Andrea, Balland, Pierre Alexandre and Morrison, Andrea (2019) Heterogeneous foreign direct investment and local innovation in Italian Provinces. Structural Change and Economic Dynamics, 53. pp. 388-401. ISSN 0954-349X

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Identification Number: 10.1016/j.strueco.2019.06.004

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) the type of FDI generating the strongest learning 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.

Item Type: Article
Additional Information: © 2019 Elsevier B.V.
Divisions: Geography & Environment
Date Deposited: 23 Aug 2022 09:30
Last Modified: 16 May 2024 03:51
URI: http://eprints.lse.ac.uk/id/eprint/116373

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