scholarly journals Inward Foreign Direct Investment and National Innovative Capacity

2019 ◽  
Vol 30 (3) ◽  
pp. 339-348 ◽  
Author(s):  
Meda Andrijauskiene ◽  
Daiva Dumčiuvienė

A remarkable increase in the attention devoted to national innovative capacity (NIC) has been noticed over the last decades. There is a strong debate whether a country’s national innovative capacity is entirely determined by local effects or it is also influenced by global network position and international economic activities. Furthermore, despite its’ importance, there is a lack of studies which take the variables of non-technological innovation into account. This paper aims to fill the empirical research gap by focusing on inward foreign direct investment as an input of NIC and engaging non–technological innovation as an output in NIC models. An investigation of 28 European Union (EU) Member States in the period of 2013-2016 shows that EU has a great intellectual capacity of human capital which drives both technological and non-technological innovation. The regression analysis revealed that the international transmission of knowledge through inward FDI and import boost the employment in knowledge-intensive sectors and has a positive effect on trademark and design applications. The findings thus help to better understand the role of international economic activities in enhancing national innovative capacity and facilitate EU efforts to catch up with the strongest innovators in the World.

2019 ◽  
Vol 22 (3) ◽  
pp. 83-98
Author(s):  
Janina Witkowska

The aim of this paper is to discuss new trends that have occurred in the policies of the EU and China towards foreign direct investment (FDI), to examine some implications of the EU‑China Comprehensive Agreement on Investment (CAI) – which is currently being negotiated – for their bilateral relations, and to assess the role which China’s “One Belt One Road’ (OBOR) initiative might play in its relations with the new EU Member States. The EU established freedom of capital movement with third countries; however, the introduction of the common investment policy has encountered some obstacles. These are related to investor protection and ISDS issues. In turn, China is carrying out an independent state policy towards foreign investment with limited liberalization of FDI flows. The negotiated EU‑China CAI is expected to create conditions conducive to bilateral foreign investment flows, and it might bring positive effects for their economies in the future. However, the progress made thus far in the negotiations is still limited. The relations between China and the new EU Member states (CEE countries) are characterized by common interests in the field of FDI flows. The new EU countries are interested in attracting Chinese FDI and seem not to show the fears that have arisen in the old EU countries.


Author(s):  
Rudresha C. E

International economic integration plays a significant role in the growth and development of any country, whether rich or poor. And foreign direct investment (FDI) is one of the major components in the process of achieving international economic integration in any economy. As is known, FDI serves as a link between investment and savings. This is true even in the case of India which is facing the deficit of savings and which can be addressed with the help of FDI. It (i.e., FDI) also helps in raising the growth and development of the economy. India is one of the leading markets at the global level. It has emerged as one of the attractive destinations in the world with a significant change in the inflow of FDI. The journey of FDI is very interesting with the introduction of liberalized policy through new economic policy 1991 and also other policy reforms of Government of India. It has witnessed a drastic change in the inflow and direction of foreign investment in Indian economy. In this backdrop, an attempt is made in this paper to examine country-wise, sector-wise and region-wise FDI inflows in Indian economy during last 19 years, 2000-01 to 2018-19. KEY WORDS: Economic Integration, Foreign Direct Investment, Developing Nations, Savings, Policy Reforms


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