Business, Management and Accounting
4 years ago

Foreign investment boosts innovation in emerging markets, benefiting domestic firms.

National Bureau of Economic Research
Does Foreign Entry Spur Innovation
Yuriy Gorodnichenko, Jan Švejnar, Katherine Terrell

Paper Summary

Foreign investment and trade can boost innovation in emerging markets. Companies from advanced economies have a stronger impact on innovation. The benefits are mainly seen in firms directly involved with foreign companies and trade, rather than across entire industries.

Related papers

Business, Management and Accounting
4 years ago

Chinese domestic firms suffer innovation decline due to foreign investment presence.

International Strategy
Trade Impact
Public Finance
Economics, Econometrics and Finance
4 years ago

Foreign firms boost productivity of local businesses, especially small enterprises.

Trade Impact
International Strategy
Infrastructure Impact
1 view
Business, Management and Accounting
4 years ago

Foreign investment boosts local firms' productivity in transition economies.

International Strategy
Trade Impact
International Finance