چرا چیزی که می توانید به صورت رایگان دریافت کنید می خرید؟اثر سرمایه گذاری مستقیم خارجی در نرخ ثبت اختراع دولتی

Research has shown that foreign direct investment (FDI) encourages economic growth at the state level. We also know that knowledge spillovers, measured via patent counts, contribute to economic growth. Using an instrumental variable approach, this paper demonstrates that FDI increases patent rates in US states, thereby providing a link for the mechanism through which FDI impacts growth. Moreover, we find that FDI in neighboring states has just as strong an impact on patent rates, giving further credence to the notion that knowledge can spill across state borders.

A considerable body of research demonstrates that foreign direct investment (FDI) can lead to economic growth via a number of channels. These include an increase in the stock of capital, transfers of knowledge, technology, and management techniques, or even through increased competition as domestic firms streamline and upgrade their own technology and production processes to compete with their foreign rivals. To date, however, there has yet to be a study that demonstrates a direct relationship between inward FDI and technological growth at the economy-wide level. Such a finding would be important considering that the literature has come to the conclusion that technology is the primary factor in sustaining long-run economic growth. Utilizing patent data from US states and a new stock measure of FDI, this paper finds evidence that inward FDI increases the stock of knowledge at the US state level, even upon controlling for the potential endogeneity of FDI. Furthermore, we find that FDI from neighboring states is as effective in increasing this knowledge as foreign firms that locate within a state’s borders. In light of the recent state competition for foreign firms, these results suggest the question: why buy what you can get for free?

The fact that FDI encourages economic growth at the state level is well-established. So too is the fact that knowledge spillovers, often measured through patent counts, promote endogenous growth. By demonstrating that FDI increases patent rates in US states, this paper provides a link for the mechanism through which FDI impacts growth. By also finding that FDI located within or across a state’s border increases knowledge, we present an interesting dilemma for states in their recruitment of foreign firms. If FDI from neighboring states is just as effective as FDI within a state at increasing the knowledge essential for long-term growth, why pay for, what our results suggest, you can get for free? This suggests that regional coordination of foreign firm recruitment might make sense, since all parties will benefit, regardless of the final location. This in turn could free up resources to invest in other areas such as education, which could provide states with a one-two punch towards increased growth.