Foreign Direct Investment and Innovatory Capacity: Empirical Evidence from the Polish Innovation Survey

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Abstract

This paper investigates with cross-sectional data the impact that FDI has had for stimulating innovatory capacity in Polish manufacturing. Available empirical evidence only weakly supports the argument that MNCs are agents of technological dependence. Polish data shows that foreign owned firms are just as likely as the domestic private majority owned firms to exhibit innovatory capacity, meaning that the direct contribution of FDI for indigenous know-why development is also positive. Some additional hypotheses are tested. It is possible to generalize the hypothesis derived from the case study evidence: that market-seeking firms are more likely to exhibit an innovatory capacity. The data also suggests that FDI may interact with, or partially be the cause of, observed virtuous and vicious circles of local knowledge creation and deterioration.
Original languageEnglish
JournalArgumenta Oeconomica
Volume9
Issue number1-2
Pages (from-to)90-106
Number of pages17
ISSN1233-5835
Publication statusPublished - 1 Jun 2000
Externally publishedYes

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