INVESTIGATING THE RELATION BETWEEN INNOVATION AND FDI IN THE EU MEMBER STATES

Oana Popovici

SEA - Practical Application of Science, 2015, issue 7, 61-68

Abstract: In the world of knowledge economy and competitiveness in which we live today, the economic growth is built on innovation. Our interest in the present paper is to find if innovation is a factor that shaped the attractiveness of EU location for foreign investors during the economic crisis. In this respect, we use the Pearson correlation coefficient. We find weak correlation between innovation and FDI stocks at the EU level during 2006-2013, with a higher and significant correlation between the two variables in the new EU countries until 2009. We do not find significant correlations in the old member states, probably because the group of member states is too heterogeneous. Also, we obtain significant positive correlation only in 11 countries out of 28, without identifying any preference related to the EU adhesion moment.

Keywords: Foreign direct investment; Innovation; Pearson correlation coefficient; European Union (search for similar items in EconPapers)
JEL-codes: C02 F23 O30 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:cmj:seapas:y:2015:i:7:p:61-68

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