Interrelationships between inward FDI and indigenous innovation in developing economies

Hannarong Shamsub · 2014 · Global Business and Economics Review

Summary. Foreign direct investment and indigenous innovation in developing economies have reciprocal but opposing relationships. Higher innovation attracts more FDI, yet increased FDI reduces innovation. R&D investment and absorptive capacity drive indigenous innovation. Government effectiveness mediates these dynamics, reducing FDI's negative impact while strengthening R&D's positive effects. The study recommends improving government effectiveness and R&D spending to harness FDI spillovers for sustained innovation and economic growth.

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@article{shamsub-2014-interrelationships-between-inward-fdi-indigenous,
  title   = {Interrelationships between inward FDI and indigenous innovation in developing economies},
  author  = {Hannarong Shamsub},
  journal = {Global Business and Economics Review},
  year    = {2014},
  doi     = {10.1504/gber.2014.063074},
  url     = {https://doi.org/10.1504/gber.2014.063074}
}

TY  - JOUR
TI  - Interrelationships between inward FDI and indigenous innovation in developing economies
AU  - Hannarong Shamsub
JO  - Global Business and Economics Review
PY  - 2014
DO  - 10.1504/gber.2014.063074
UR  - https://doi.org/10.1504/gber.2014.063074
ER  - 

Details

DOI

10.1504/gber.2014.063074

Countries

Vietnam

Regions

Asia

Categories

innovation-theory, funding, policy

Added

2026-04-28