Drivers of Brazilian foreign investments – technology seeking and technology exploiting as determinants of emerging FDI

Flavia Carvalho (), Geert Duysters () and Ionara Costa ()
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Flavia Carvalho: UNU-MERIT, Maastricht University

No 2010-017, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: The paper uses data from a recent survey on Brazilian firms to investigate the role of technology in the internationalization of firms, and whether if affects the destination of foreign investments. Emerging markets FDI is a much-debated topic these days, and their technology-seeking purpose is a strong driver for the internationalization, as firms are searching for assets in order to compete. We apply a logit model to seek for the influence of determinants and some firms’ competitive advantages on the choice for developed countries as a destination for Brazilian FDI. We also test which modes of entry are preferred when investing in a developed destination. Our results point out the importance of a skilled labor force on the decisions to invest in developed destinations. We found out that technology is an asset used as a competitive resource, and that Brazilian firms do not undertake technology-seeking investments in developed countries, and that acquisitions and Greenfield investments are the main modes of entry.

Keywords: foreign direct investments; emerging markets; technology; innovation; competitive advantages; multinational corporations (search for similar items in EconPapers)
JEL-codes: F21 F23 O33 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2010017

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