How Industrial Diversity Shapes the Effects of Foreign Direct Investment Spillovers on Regional Innovation

Autor(es)

Garcia, Renato ; Araujo, Veneziano ; Mascarini, Suelene ; Gomes Santos, Emerson ; Costa, Ariana ; Ferreira, Sarah

• Tipo de documento: Artigo Científico
• Fonte: INTERNATIONAL REGIONAL SCIENCE REVIEW; v. 46, n. 1, p. 25-pg., 2022-05-11.

Resumo

Inward Foreign Direct Investment (FDI) can generate important knowledge spillovers on local economies, fostering regional innovation, especially in developing countries. In this paper, we analyze how regional industrial structure shapes the effects of inward FDI spillovers on the innovative performance of Brazilian regions. Prior literature has analyzed the effects of FDI spillovers on the productivity of host countries' firms, while less attention has been given to the corresponding effects on regional innovation. Thus, we use data on the investments of Multinational Companies in Brazilian regions for 2003-2014 and relate these data to the innovative performance measured by patents. Our results show that inward FDI positively influences innovation at the regional level since Brazilian regions that receive inward FDI present stronger innovative performance. In addition, the positive effects of inward FDI on local innovation are reinforced by the diversity of the regional industrial structure. Diversified regions that receive inward FDI are therefore better able to leverage the benefits of inward FDI spillovers. (AU)

• Processo FAPESP: 15/50044-0 - O Centro Paula Souza integrando-se ao Sistema Paulista de Inovação, suas redes temáticas e arranjos regionais: projeto piloto na região do Vale do Paraíba
• Beneficiário: Renato de Castro Garcia
• Modalidade de apoio: Auxílio à Pesquisa - Pesquisa em Políticas Públicas