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Inward FDI and local innovative performance. an empirical investigation on Italian provinces

Ascani, Andrea and Gagliardi, Luisa (2015) Inward FDI and local innovative performance. an empirical investigation on Italian provinces. Review of Regional Research, 35 (1). pp. 29-47. ISSN 0173-7600

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Identification Number: 10.1007/s10037-014-0084-2

Abstract

Do knowledge externalities from FDI foster local innovative performance? Employing manufacturing data for the period 2001-2006 this paper investigates the impact of inward FDI on the generation of innovation. Adopting a Knowledge Production Function approach (KPF), we find that in the case of Italian provinces the presence of foreign investment is beneficial for the innovative performance of recipient economies. These results are robust to a number of checks adding new evidence to the literature on FDI impact. In terms of policy consideration, this implies that a structured policy for the attraction of external capital might channel external sources of knowledge to complement local capabilities.

Item Type: Article
Official URL: http://download.springer.com/static/pdf/307/art%25...
Additional Information: © 2014 Springer-Verlag Berlin Heidelberg.
Subjects: H Social Sciences > HS Societies secret benevolent etc
Date Deposited: 24 Jun 2014 14:34
Last Modified: 25 May 2016 08:16
URI: http://eprints.lse.ac.uk/id/eprint/57122

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