A New Nexus Between Foreign Direct Investment, Industrial and Innovation Policies

Ionara Costa () and Sergey Filippov ()

No 30, UNU-MERIT Working Paper Series from United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology

Abstract: This paper deals with the interplay between foreign direct investment (FDI) and the industrial and innovation policies of host developing economies. It aims to redefine the nexus between these different, though yet strongly interconnected policy areas, by bringing the affiliates of multinational corporations already established in a host economy to the first level of analysis. It argues that host country governments should concentrate on enhancing innovativeness and development of existing foreign-owned affiliates, instead of striving to attract higher volumes of FDI inflows.

Keywords: Foreign Direct Investment; FDI; Foreign-owned Affiliates; Industrial Policy; Innovation Policy (search for similar items in EconPapers)
JEL-codes: F21 F23 F29 L25 O25 O38 O39 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino
Date: 2007
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Persistent link: http://EconPapers.repec.org/RePEc:dgr:unumer:2007030

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