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Government Strategies to Attract R&D-Intensive FDI

Guimón, José (2007) Government Strategies to Attract R&D-Intensive FDI. [Working Paper or Technical Report]

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Abstract

Competition among countries and regions to attract the R&D activities of multinational enterprises
has increased substantially during the last years, but the strategies used by governments in
this competition remain largely unexplored. This paper proposes a taxonomy of the main policy
instruments available to stimulate inward R&D-intensive FDI and presents the results of a comparative
case-study of two European countries: Spain and Ireland. The main conclusion is that an
efficient promotion of R&D-intensive FDI calls for a closer coordination between innovation
policy and inward investment promotion, which are two policy areas that have traditionally
operated rather independently from each other. In addition, inward investment agencies targeting
R&D-intensive FDI are advised to reconfigure the scope of services they provide by placing more
emphasis on after-care, since R&D-intensive FDI tends to be evolutionary rather than greenfield.
Resumen
La competición entre países y regiones por atraer las actividades de I+D de las empresas multinacionales
ha aumentado sustancialmente durante los últimos años, pero no hay suficientes estudios
sobre las estrategias utilizadas por los gobiernos en esta competición. Este artículo propone una taxonomía
de los principales instrumentos políticos para estimular la IED intensiva en I+D y presenta
los resultados de un estudio de caso comparativo de dos países europeos: España e Irlanda. La
principal conclusión es que una promoción eficiente de la IED intensiva en I+D requiere una mayor
coordinación entre las políticas de innovación y las políticas de atracción de la IED, que tradicionalmente
han funcionado de forma independiente. Otra recomendación que emana de este estudio
es que las agencias de promoción de inversiones que deseen priorizar la IED intensiva en I+D
deberían reconfigurar la gama de servicios que prestan para pasar a centrarse en los servicios postinversión
(o “after-care”), ya que la IED-intensiva en I+D tiende a ocurrir a través de un proceso
evolutivo y no tanto a través de inversiones “greenfield”.

Item Type:Working Paper or Technical Report
Uncontrolled Keywords:I+D; IED; Empresas multinacionales, R&D, FDI, Multinational enterprises.
Subjects:Social sciences > Political science > Goverments
Social sciences > Economics > Business enterprises
Series Name:Policy Papers
Volume:UNSPECIFIED
Number:PP03/0
ID Code:11864
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Deposited On:16 Dec 2010 10:14
Last Modified:06 Feb 2014 09:12

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