The effects of foreign direct investment on R&D and innovations: Panel data analysis for developing Asian countries

Erdal L. , Göçer İ.

Procedia-Social and Behavioral Sciences, vol.195, no.195, pp.749-758, 2015 (International Conference Book)

  • Publication Type: Article / Article
  • Volume: 195 Issue: 195
  • Publication Date: 2015
  • Title of Journal : Procedia-Social and Behavioral Sciences
  • Page Numbers: pp.749-758


n global market, the wealth of natural resources or factor endowments is no longer key factors of competitiveness. Due to dynamic structure of international competition, it is inevitable to develop new technologies and products for the countries who want to increase their competitiveness. Now, the ability to produce different and more high-tech products which obtained by R&D and innovation, provided by Foreign Direct Investments (FDI), have become more important. FDI, providing substantial financial capital, technological know-how and managerial expertise to the recipient economies, play a crucial role. FDI is one of the most important factors behind high economic growth achieved, in South Korea, China, India, Malaysia and Singapore. These countries are primarily provided tax incentives, monopoly rights and cost advantages facilities to foreign investors.