Knowledge Spillovers from Foreign Direct Investment and the Role of Local R&D Activities: Evidence from Indonesia

Yasuyuki Todo and Koji Miyamoto

Economic Development and Cultural Change, 2006, vol. 55, issue 1, 173-200

Abstract: A large number of studies have used firm-level data to examine whether foreign direct investment (FDI) generates knowledge spillovers to domestically owned firms in less developed countries. However, the results are mixed. In this study, Indonesian plant-level panel data are used to test whether the often-ignored local R&D activities of foreign-owned firms in the host country enhance knowledge spillovers from FDI. The analysis found positive spillovers from R&D-performing foreign-owned firms, while spillovers from non-R&D-performing foreign-owned firms were absent.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:ecdecc:y:2006:v:55:i:1:p:173-200

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