A new nexus between foreign direct investment, industrial and innovation policies
Ionara Costa & Sergey Filippov
#2007-030
This paper deals with the interplay between foreign direct investment
(FDI) and the industrial and innovation policies of host developing
economies. It aims to redefine the nexus between these different, though
yet strongly interconnected policy areas, by bringing the affiliates of
multinational corporations already established in a host economy to the
first level of analysis. It argues that host country governments should
concentrate on enhancing innovativeness and development of existing
foreign-owned affiliates, instead of striving to attract higher volumes
of FDI inflows.
Key Words: Foreign Direct Investment; Foreign-owned affiliates;
Industrial Policy; Innovation Policy
JEL Codes: F21, F23, F29, L25, 025, 038, 039
UNU-MERIT Working Papers
ISSN 1871-9872
