Greenfield FDIs as a catalyst for technological collaborations between European regions and emerging countries

Ivan De Noni, Fiorenza Belussi and Yanting Gu

European Planning Studies, 2024, vol. 32, issue 9, 1982-2002

Abstract: This research emphasizes the increasing role of emerging countries in the advancement of future technologies and investigates the extent to which greenfield foreign direct investments (FDIs) can represent a bridge capable of stimulating technological collaboration opportunities between European regions and emerging countries. Utilizing a balanced panel dataset spanning 15 years from 2003 to 2017 and covering 286 European regions, we conducted a study that integrated collaborative patent data and foreign investments with emerging countries. Our findings indicate that technological collaboration primarily depends on inward FDIs (from emerging countries to Europe) rather than outward FDIs (from Europe to emerging countries). Furthermore, we discovered that a mutually reinforcing process can significantly enhance this collaboration. In this context, such a process acts as a cornerstone for the European Union (EU), offering a potential solution to navigate the paradoxical pressure between the rise of protectionism in response to the imbalances and inequalities stemming from globalization and the need to promote an environment conducive to global openness, competition and innovation.

Date: 2024
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DOI: 10.1080/09654313.2023.2264335

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