World Investment Report 2005: Transnational Corporations and the Internationalization of R&D

United Nations Conference on Trade and Development

No 15, World Investment Report from United Nations Conference on Trade and Development

Abstract: The 2005 Report examines the internationalization of research and development (R&D) activities by transnational corporations and analyses its implications for economic development. It reviews recent trends in foreign direct investment and international production, highlighting the increasing location of R&D functions in developing economies. The Report assesses the drivers of cross-border R&D investment and evaluates how these activities influence innovation, technological learning and industrial upgrading in host countries. Particular attention is given to the interaction between foreign affiliates, domestic firms and research institutions, and to the policies required to strengthen linkages and knowledge spillovers. The analysis explores the opportunities and challenges associated with integrating developing countries into global innovation networks and identifies policy measures that can enhance the contribution of internationalized R&D to productivity growth, competitiveness and long-term development.

Date: 2005
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