Uneven geographical distribution of R%D-related foreign direct investment in Latin America: uncovering the paradox of national development

Carlos Loaiza Alamo

International Journal of Technological Learning, Innovation and Development, 2024, vol. 15, issue 4, 347-369

Abstract: R&D-related FDI can bring substantial benefits to host territories, but it may also reinforce divergences in development, leaving some areas economically behind. In this study, I analyse the spatial distribution of R&D-related FDI as a proxy of innovation in Latin America, both between and within countries, using manufacturing FDI activities as a benchmark. The study uses the fDi markets database to identify locations of R&D greenfield investments in 14 Latin American countries over the period of 2007-2017. The findings highlight the paradox between the benefits that host cities receive from R&D-related FDI and the uncertain future for no-host territories. Balanced regional development policies are critical to facilitate innovation promotion and address the broader need for a more equitable distribution of the benefits of such initiatives across the entire nation.

Keywords: R%D FDI; concentration; Latin America; innovation systems; national divergencies. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijtlid:v:15:y:2024:i:4:p:347-369

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