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Globalizing InnovationState Institutions and Foreign Direct Investment in Emerging Economies$
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Patrick J. W. Egan

Print publication date: 2018

Print ISBN-13: 9780262037358

Published to MIT Press Scholarship Online: September 2018

DOI: 10.7551/mitpress/9780262037358.001.0001

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The Determinants of Multinational Innovation in Emerging Economies

The Determinants of Multinational Innovation in Emerging Economies

(p.103) 4 The Determinants of Multinational Innovation in Emerging Economies
Globalizing Innovation

Patrick J. W. Egan

The MIT Press

This chapter considers innovation outcomes among multinational firms in emerging economies. A variety of econometric tests are conducted, in which innovation is predicted by different firm and country level variables. Innovation is measured in different ways, from patenting activity to firm R&D spending levels. Various datasets are used in this chapter, including firm surveys and patent counts. This chapter tests a number of the hypotheses developed in chapter 2, using different modelling strategies. Statistical analysis is emphasized, however case studies also appear to illustrate the dynamics and mechanisms contained in the models. The firm identifies a number of firm and country characteristics that impact the innovation proclivity of multinational firms. The size of certain economic sectors within the host country, in particular the natural resource sector, also impacts the likelihood of multinational innovation.

Keywords:   Economic Sectors, Foreign Direct Investment, Innovation, R&D, Firm Ownership, Economic Liberalization, Firm Surveys, Investment Strategy, Investment Treaties, Patents

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