Local industrial systems and the location of FDI in Italy

This article investigates the determinants of foreign direct investment (FDI)location across Italian provinces. Specifically it examines the relationship between industry- specific local industrial systems and the location of inward FDI. This extends previous analysis beyond the mere density of activity, to illustrate the importance of the specific nature of agglomerations in attracting inward investment. The article develops a model of FDI location choice using a unique FDI database stratified by industry and province. The results also suggest that the importance of agglomeration differs between industries, and offers some explanation for this

Foreign Direct Investment, Technology Diffusion, and Host Country Productivity Growth

The principal objective of this paper is to ascertain whether foreign direct investment (FDI) has statistically significant effects on host countries\u27 economic performance, such as total factor productivity. Such effects are often referred to as FDI externalities or spillover effects. This paper attempts to evaluate whether these spillover effects depend on the sending countries\u27 income levels. Our empirical analysis shows that FDI exerts positive impacts on less developed countries. Further, we determine that the impacts of FDI from developed countries are more prevalent. So-called North-South effects were confirmed; however, we do not detect South-South effects. We also investigated the other channel, imports, and demonstrate its significant impacts on total factor productivity. © 2011 by Asian Development Bank

Total Factor Productivity and the Role of Entrepreneurship

Total factor productivity of twenty OECD countries for a recent period (1971-2002) is explained using six different models based on the established literature. Traditionally, entrepreneurship is not dealt with in these models. In the present paper it is shown that – when this variable is added - in all models there is a significant influence of entrepreneurship while the remaining effects mainly stay the same. Entrepreneurship is measured as the business ownership rate (number of business owners per workforce) corrected for the level of economic development (GDP per capita)

Micro Evidence on International Patenting

Globalization, high growth rates in high-tech industries, growing emerging markets and harmonization of patent institutions across countries have stimulated patenting in foreign markets. We use a simple model of international patenting, where the decision to patent in a foreign country depends on country characteristics and the quality of the patented invention. With access to a detailed database on individual patents owned by Swedish small firms and inventors, we are able to estimate some of these relationships and test their validity. Our results indicate that the propensity to apply for international patent protection increases with indicators of the quality of the invention and indicators of technological rivalry and market size in the host market

The control and generation of technology in European food and beverage multinationals

32 págs.Using a sample of 59 major European food and beverage multinationals and their 8,432 subsidiaries worldwide, we study the characteristics and evolution over time of their inventions. In doing so, we analyse: i) 8,626 EPO applications filed by these companies between 1978 and 2005; ii) 3,650 US patents they applied for between 1978 and 2001; iii) more than 2,000 patent families of three different kinds; and iv) the location of their R&D entres of excellence. We find that the internationalisation of invention is in reality chiefly a European phenomenon for these companies, which also tend to retain their key R&D strategic assets within their home countries or in neighbouring countries. The innovations of EU-based companies which are most closely related to their core businesses tend to be located in EU countries; however, such companies do not display a geographical preference with regard to high value or technically complex innovations, which are generated at home and abroad and inside and outside the EU. From these findings we extract conclusions relevant to European R&D policy.Peer reviewe