Global knowledge and R&D foreign direct investment flows: recent pattern in Asia Pacific, Europe and North America

Mehmet Demirbag, Rob Huggins, Violina Ratcheva

    Research output: Contribution to conferencePaper

    Abstract

    The global nature of foreign direct investment (FDI) is changing in terms of both location and sectors of activity. This paper analyses recent flows of R&D FDI across the globe. It is found that North America has been the source of one-half of all R&D FDI between 2002 and 2005. Asia Pacific, especially China and India, has been the overwhelming destination for most R&D FDI, accounting for more than one-half of all investment and almost three-quarters of the jobs created. In general, R&D FDI has not been equitably spread across nations such as India and China but concentrated in a small number of locations. R&D FDI from advanced economies is facilitating the emergence of new centres and clusters of knowledge across the globe. This global redistribution of knowledge brings challenges to policymakers in both the developed and the developing world. The challenges come in two main forms: first, cross-regional disparities in knowledge-based wealth creation within particular nations; and second, anxieties about the offshoring of knowledge-based tasks and jobs. It is argued that current patterns of global knowledge flow require policies to nurture the open regional innovation systems being established by these flows.

    Conference

    ConferenceAcademy of International Business, UK Chapter
    CountryUnited Kingdom
    CityManchester
    Period7/04/068/04/06

    Fingerprint

    Asia-Pacific
    Foreign direct investment
    China
    Knowledge-based
    India
    Globe
    Knowledge flow
    Wealth creation
    Regional disparities
    Developing world
    Regional innovation systems
    Redistribution
    Offshoring
    Anxiety
    Politicians
    Destination

    Keywords

    • india
    • foreign direct investment
    • FDI
    • research and development
    • R&D
    • knowledge flows
    • knowledge clusters
    • china
    • global knowledge

    Cite this

    Demirbag, M., Huggins, R., & Ratcheva, V. (2006). Global knowledge and R&D foreign direct investment flows: recent pattern in Asia Pacific, Europe and North America. Paper presented at Academy of International Business, UK Chapter, Manchester, United Kingdom.
    Demirbag, Mehmet ; Huggins, Rob ; Ratcheva, Violina. / Global knowledge and R&D foreign direct investment flows : recent pattern in Asia Pacific, Europe and North America. Paper presented at Academy of International Business, UK Chapter, Manchester, United Kingdom.
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    abstract = "The global nature of foreign direct investment (FDI) is changing in terms of both location and sectors of activity. This paper analyses recent flows of R&D FDI across the globe. It is found that North America has been the source of one-half of all R&D FDI between 2002 and 2005. Asia Pacific, especially China and India, has been the overwhelming destination for most R&D FDI, accounting for more than one-half of all investment and almost three-quarters of the jobs created. In general, R&D FDI has not been equitably spread across nations such as India and China but concentrated in a small number of locations. R&D FDI from advanced economies is facilitating the emergence of new centres and clusters of knowledge across the globe. This global redistribution of knowledge brings challenges to policymakers in both the developed and the developing world. The challenges come in two main forms: first, cross-regional disparities in knowledge-based wealth creation within particular nations; and second, anxieties about the offshoring of knowledge-based tasks and jobs. It is argued that current patterns of global knowledge flow require policies to nurture the open regional innovation systems being established by these flows.",
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    Demirbag, M, Huggins, R & Ratcheva, V 2006, 'Global knowledge and R&D foreign direct investment flows: recent pattern in Asia Pacific, Europe and North America' Paper presented at Academy of International Business, UK Chapter, Manchester, United Kingdom, 7/04/06 - 8/04/06, .

    Global knowledge and R&D foreign direct investment flows : recent pattern in Asia Pacific, Europe and North America. / Demirbag, Mehmet; Huggins, Rob; Ratcheva, Violina.

    2006. Paper presented at Academy of International Business, UK Chapter, Manchester, United Kingdom.

    Research output: Contribution to conferencePaper

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    N2 - The global nature of foreign direct investment (FDI) is changing in terms of both location and sectors of activity. This paper analyses recent flows of R&D FDI across the globe. It is found that North America has been the source of one-half of all R&D FDI between 2002 and 2005. Asia Pacific, especially China and India, has been the overwhelming destination for most R&D FDI, accounting for more than one-half of all investment and almost three-quarters of the jobs created. In general, R&D FDI has not been equitably spread across nations such as India and China but concentrated in a small number of locations. R&D FDI from advanced economies is facilitating the emergence of new centres and clusters of knowledge across the globe. This global redistribution of knowledge brings challenges to policymakers in both the developed and the developing world. The challenges come in two main forms: first, cross-regional disparities in knowledge-based wealth creation within particular nations; and second, anxieties about the offshoring of knowledge-based tasks and jobs. It is argued that current patterns of global knowledge flow require policies to nurture the open regional innovation systems being established by these flows.

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    Demirbag M, Huggins R, Ratcheva V. Global knowledge and R&D foreign direct investment flows: recent pattern in Asia Pacific, Europe and North America. 2006. Paper presented at Academy of International Business, UK Chapter, Manchester, United Kingdom.