Fdi spillover effects on innovation activities of knowledge using and knowledge creating firms: evidence from an emerging economy

Nina Vujanovic, Slavo Radosevic, Nebojsa Stojcic, Mehtap Hisarciklilar and Iraj Hashi

MPRA Paper from University Library of Munich, Germany

Abstract: The beneficial effects of innovation for firm performance and competitiveness are well established but it has been suggested in recent years that innovation regimes differ between advanced and emerging economies. While advanced economies rely on knowledge generation, their emerging counterparts follow mainly knowledge use regime through the application of existing knowledge and technology. Climbing up the technological ladder can be helped through spillovers from foreign investors to local firms. We investigate whether FDI spillovers influence different phases of innovation process (from decision to innovate to productivity) among knowledge using and knowledge creating firms in an emerging European economy. The results show that innovation process in emerging economies is closer to imitation than creation of novel products. Local firms benefit from foreign counterparts in the early phase of innovation process. Stronger FDI effects are found on firms that undertake innovation through knowledge use than through knowledge generation.

Keywords: knowledge use; knowledge generation; FDI; innovation; emerging economy (search for similar items in EconPapers)
JEL-codes: O31 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino, nep-int, nep-knm, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Related works:
Journal Article: FDI spillover effects on innovation activities of knowledge using and knowledge creating firms: Evidence from an emerging economy (2022)
Working Paper: FDI Spillover Effects on Innovation Activities of Knowledge-using and Knowledge-creating Firms: Evidence from an Emerging Economy (2022)
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