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Technology gaps, absorptive capacity and the impact of inward investments on productivity of European firms *

Davide Castellani, Antonello Zanfei · 2003 · Economics of Innovation and New Technology

Summary. Using firm-level data from France, Italy, and Spain (1993-1997), this paper examines how foreign direct investment affects domestic firm productivity. The researchers find that positive effects depend on technology gaps and absorptive capacity. In most sectors, larger technology gaps between foreign and domestic firms enable stronger productivity gains. However, in science-based industries, domestic firms benefit more when they have higher absorptive capacity and smaller technology gaps from foreign competitors.

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Castellani, D., & Zanfei, A.. (2003). Technology gaps, absorptive capacity and the impact of inward investments on productivity of European firms *. Economics of Innovation and New Technology. https://doi.org/10.1080/714933761

Details

DOI
10.1080/714933761
Countries
France, Italy, Spain
Regions
Europe
Categories
regional-innovation-systems, innovation-networks, general-innovation
Added
2026-04-28