Globalizing Innovation: State Institutions and Foreign Direct Investment in Emerging Economies

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Patrick J.W. Egan (Assistant Professor, Tulane University)

Globalizing Innovation

State Institutions and Foreign Direct Investment in Emerging Economies

Patrick J.W. Egan (Assistant Professor, Tulane University)

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English

MIT Press
12 January 2018

Globalization; International finance; Development economics; Business innovation

Series: Globalizing Innovation

The impact of host country institutions and policy on innovation by multinational firms in emerging economies.

In the past, multinational firms have looked to developing countries as sources of raw materials, markets, or production efficiencies, but rarely as locations for innovation. Today, however, R&D facilities and other indicators of multinational-linked innovation are becoming more common in emerging economies. In this book, Patrick Egan investigates patterns of inward foreign direct investment (FDI) in developing countries, considering the impact of host country institutions and policy on the innovative activities undertaken by multinational firms. He examines the uneven spread of innovation-intensive foreign direct investment and emerging sectoral distributions, then develops a number of arguments about the determinants of multinational innovation in developing countries. Firms are attracted by a country's supply of skilled labor and are often eager to innovate close to new markets; but, Egan finds, host country institutions and the configuration of the host country's investment policies have a strong impact on firm decisions and evolving country investment profiles.

Egan uses econometric analysis to identify determinants of multinational innovation, and examines differences among state institutions as a key variable. He then offers a detailed case study, assessing Ireland's attempts to use foreign direct investment in innovation as a catalyst for development. While FDI is a potential vehicle for industrial upgrading, Egan cautions, it is neither necessary nor sufficient for development. Furthermore, innovation-intensive investments are not likely to develop linkages with local actors or otherwise embed themselves in host economies in the absence of active, discriminating policies channeled through coherent and coordinated institutions.

By: Patrick J.W. Egan (Assistant Professor Tulane University)
Imprint: MIT Press
Country of Publication: United States
Dimensions: Height: 229mm, Width: 152mm, Spine: 13mm
ISBN: 9780262037358
ISBN 10: 0262037351
Series: Globalizing Innovation
Pages: 312
Publication Date: 12 January 2018
Recommended Age: From 18 years
Audience: Professional and scholarly , Undergraduate
Format: Hardback
Publisher's Status: Active

Patrick J. W. Egan is Assistant Professor of Political Science at Tulane University.