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

Yasuyuki Todo, Koji Miyamoto

Research output: Contribution to journalArticle

33 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 languageEnglish
Pages (from-to)173-200
Number of pages28
JournalEconomic Development and Cultural Change
Volume55
Issue number1
DOIs
Publication statusPublished - 2006 Oct
Externally publishedYes

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ASJC Scopus subject areas

  • Business and International Management

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