Foreign Direct Investment, Absorptive Capacity and Regional Innovation Capabilities: Evidence from China.

Working paper

Innovation has widely been regarded as one of the main drivers of economic growth in the knowledge economy. This paper investigates the impact of foreign direct investment (FDI) on the development of regional innovation capabilities in developing countries using a panel dataset from China. We find that FDI can contribute significantly to the overall regional innovation capacity. The strength of this positive effect depends, however, on the availability of the absorptive capacity and the prese...

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Authors: Fu, X

• Publication status: Published
• Peer review status: Not peer reviewed
• Publisher: Centre for the Study of African Economies Publisher's website
• Series: Working Paper Series
• Publication date: 2007-01-01
• Language: English
• Keywords: regional innovation capacity; knowledge economy; foreign direct investment; China; innovation
• Subjects: Economics; Innovation, productivity and growth; Macro and international economics