Inward Foreign Direct Investment and Innovation: Evidence from Italian Provinces

36 Pages Posted: 1 May 2015

See all articles by Roberto Antonietti

Roberto Antonietti

University of Padova - "Marco Fanno" Department of Economics and Management

Raffaello Bronzini

Bank of Italy

Giulio Cainelli

Università degli Studi di Bari - Dipartimento per lo Studio delle Societa Mediterranee; CERIS-CNR

Date Written: March 27, 2015

Abstract

This paper investigates empirically whether inward greenfield foreign direct investment (FDI) is related to greater sectorial innovation in the host Italian provinces. We combine several sources of data to estimate panel count models, regressing the annual number of patents in each province and industry against a series of lagged FDI variables. Our results show that a positive relationship between FDI and local patenting emerges only for services. In particular, we find that greater inward FDI in services positively influences local patenting activity in knowledge-intensive business services. These results are robust to endogeneity and the inclusion of province controls and fixed effects.

Keywords: inward greenfield FDI, innovation, patents, research and development, panel count models

JEL Classification: F14, F23, O31, C23

Suggested Citation

Antonietti, Roberto and Bronzini, Raffaello and Cainelli, Giulio, Inward Foreign Direct Investment and Innovation: Evidence from Italian Provinces (March 27, 2015). Bank of Italy Temi di Discussione (Working Paper) No. 1006, Available at SSRN: https://ssrn.com/abstract=2600896 or http://dx.doi.org/10.2139/ssrn.2600896

Roberto Antonietti

University of Padova - "Marco Fanno" Department of Economics and Management ( email )

via Del Santo 33
Padova, PD 35123
Italy
+390498271508 (Phone)
+390498274211 (Fax)

HOME PAGE: http://www.economia.unipd.it/category/ruoli/personale-docente?key=4FD07667CE6DC0DA28DDD61A73393A5F

Raffaello Bronzini (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Giulio Cainelli

Università degli Studi di Bari - Dipartimento per lo Studio delle Societa Mediterranee ( email )

Piazza Umberto I
70124 Bari, 70121
Italy

CERIS-CNR ( email )

Via Avogadro 8
10121 Torino
Italy

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