EconPapers    
Economics at your fingertips  
 

Foreign direct investment and technology spillover in Iran: The role of technological capabilities of subsidiaries

Ali Salim, Mohammad Reza Razavi and Masoud Afshari-Mofrad

Technological Forecasting and Social Change, 2017, vol. 122, issue C, 207-214

Abstract: Foreign direct investment (FDI) plays a significant role in global business by providing new markets and marketing channels, cheaper resources, access to new technologies, products, skills and financing. One of the most important aspects of FDI for a host country is technology spillover trough which domestic firms gain access to new technologies from international enterprises. Iran, as a developing country, has had some form of engagement with foreign capital for more than 150years. Nevertheless, there are limited studies on the role of FDI in technology spillover in Iran. This study investigates the effect of technological capabilities of foreign subsidiaries on the relationship between FDI and technology spillover channels including Demonstration effect, Training effect, Collaboration effect, Linkage effect and Worker turnover. A questionnaire was completed by 100 subsidiary units based in Iran. The sample consists of all foreign subsidiaries active in different industry or service sections all over the country. The results of running logistic regression model on data from questionnaires showed that FDI could not affect spillover channels directly. Yet, the results proved that technological capabilities of subsidiary units, as mediating players, have a positive influence on two spillover channels namely Demonstration effect and Training effect.

Keywords: Foreign direct investment (FDI); Technological capabilities; Technology spillover channels; Iran (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162515002747
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:122:y:2017:i:c:p:207-214

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-10-07
Handle: RePEc:eee:tefoso:v:122:y:2017:i:c:p:207-214