Knowledge spillovers from foreign direct investment and the role of local R&D activities: Evidence from Indonesia

Yasuyuki Todo; Koji Miyamoto

doi:10.1086/505729

Knowledge spillovers from foreign direct investment and the role of local R&D activities: Evidence from Indonesia

Yasuyuki Todo^*, Koji Miyamoto

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

47 Citations (Scopus)

Abstract

Local research and development (R&D) activities performed by foreign firms were examined to determine whether these activities lead to greater spillovers from foreign direct investment (FDI). Based on plant-level panel data for the Indonesian manufacturing sector during the period 1994-97, it was found that there are knowledge spillovers from R&D-performing foreign firms in the same industry. However, no such spillovers were found from non-R&D-performing firms. Overall, results show that there are indeed knowledge spillovers from foreign to domestic firms but the process of such spillovers from FDI is not as simple as first thought.

Original language	English
Pages (from-to)	173-200
Number of pages	28
Journal	Economic Development and Cultural Change
Volume	55
Issue number	1
DOIs	https://doi.org/10.1086/505729
Publication status	Published - 2006 Oct
Externally published	Yes

ASJC Scopus subject areas

Development
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1086/505729

Cite this

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abstract = "Local research and development (R&D) activities performed by foreign firms were examined to determine whether these activities lead to greater spillovers from foreign direct investment (FDI). Based on plant-level panel data for the Indonesian manufacturing sector during the period 1994-97, it was found that there are knowledge spillovers from R&D-performing foreign firms in the same industry. However, no such spillovers were found from non-R&D-performing firms. Overall, results show that there are indeed knowledge spillovers from foreign to domestic firms but the process of such spillovers from FDI is not as simple as first thought.",

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Knowledge spillovers from foreign direct investment and the role of local R&D activities: Evidence from Indonesia

Abstract

ASJC Scopus subject areas

UN SDGs

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