Attractiveness for Innovation: Location Factors for by OECD

By OECD

Popularity for funding in innovation is excessive at the coverage schedule in lots of nations as innovation is a key issue of development and competitiveness. nearly all governments are willing to draw overseas funding through multinational agencies (MNEs) as a method to advertise development and employment, create new jobs and produce in new applied sciences. whereas all international locations and areas have a few coverage measures in position which are geared toward expanding their acceptance for innovation, it's much less transparent if those rules are potent. This ebook analyses the present tendencies in overseas funding in innovation and the recognition guidelines already applied. It additionally explores in additional element the function of funding incentives that governments are likely to provide to foreign traders: their purpose, their effect and their usefulness. The proof offered during this document increases transparent coverage matters and questions latest rules. a few coverage ideas are formulated to steer coverage makers.

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Swenson (1999), “Attracting Foreign Manufacturing: Investment Promotion and Agglomeration”, Regional Science and Urban Economics, No 29, pp. 197-218. ATTRACTIVENESS FOR INNOVATION – LOCATION FACTORS FOR INTERNATIONAL INVESTMENT – © OECD 2011 55 56 – 2. LOCATION FACTORS FOR INTERNATIONAL INVESTMENT IN INNOVATION Head, K. and T. Mayer (2004), “Market Potential and the Location of Japanese Firms in the European Union”, Review of Economics and Statistics, 86(4), pp. 959-972. Helpman, E. (1984), “A Simple Theory of Trade with Multinational Corporations”, Journal of Political Economy, Vol.

All innovation-related industries grouped together, show the importance of market size, agglomeration effects and to a minor extent, the quality of public governance for the location of international activities in innovation-related industries. The overall degree of the country’s openness to FDI was also found to be a significant location determinant. Significant differences in location criteria were reported depending on the variable used as proxy for MNEs’ presence. Foreign-controlled value added was found to respond strongly to market size/growth and industrial agglomeration effects.

G. excellence centres, research departments) is reported as a key location factor in the pharmaceutical industry in different studies (Gassmann and von Zedwitz, 1999; Serapio and Dalton, 1999; Madhok and Osegowitch, 2000; and Abramowsky et al. 2007). Florida (1997) found that the internationalisation of biotechnology is motivated by access to foreign science and technology to a greater degree than in other industries, such as the automotive industry, where market considerations are more important.

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