Heterogeneous foreign direct investment and local innovation in Italian Provinces
Publication date
2020-06
Authors
Ascani, Andrea
Balland, Pierre-Alexandre
Morrison, Andrea
Editors
Advisors
Supervisors
Document Type
Article
Metadata
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taverne
Abstract
Locations all over the world compete to attract Foreign Direct Investment (FDI) in order to access knowledge, technology, and boost economic development. Although the literature shows a positive impact of FDI, little is known about (1) its effect on neighbouring regions and (2) the type of FDI generating the strongest learning effects. To fill this gap, we investigate the FDI-innovation relationship in Italian provinces. By adopting the Pavitt taxonomy of manufacturing sectors, we suggest that only specific categories of FDI benefit local economies, whilst other types may produce negative outcomes. The evidence on the spatial implications of FDI remains limited.
Keywords
FDI heterogeneity, Foreign direct investment, Inter-sectoral linkages, Italy, Pavitt taxonomy, Spillovers, Taverne, Economics and Econometrics, SDG 9 - Industry, Innovation, and Infrastructure
Citation
Ascani, A, Balland, P A & Morrison, A 2020, 'Heterogeneous foreign direct investment and local innovation in Italian Provinces', Structural Change and Economic Dynamics, vol. 53, pp. 388-401. https://doi.org/10.1016/j.strueco.2019.06.004