Inward foreign direct investment and innovation: evidence from Italian provinces

Roberto Antonietti, Raffaello Bronzini () and Giulio Cainelli ()
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Giulio Cainelli: Unicversity of Padova

No 1006, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper investigates empirically whether inward greenfield foreign direct investment (FDI) is related to greater sectorial innovation in the host Italian provinces. We combine several sources of data to estimate panel count models, regressing the annual number of patents in each province and industry against a series of lagged FDI variables. Our results show that a positive relationship between FDI and local patenting emerges only for services. In particular, we find that greater inward FDI in services positively influences local patenting activity in knowledge-intensive business services. These results are robust to endogeneity and the inclusion of province controls and fixed effects.

Keywords: inward greenfield FDI; innovation; patents; research and development; panel count models (search for similar items in EconPapers)
JEL-codes: C23 F14 F23 O31 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-cse, nep-eur, nep-geo, nep-ino, nep-int, nep-knm and nep-sbm
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1006_15

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