Table of Contents

Innovation, Global Change and Territorial Resilience

Innovation, Global Change and Territorial Resilience

New Horizons in Regional Science series

Edited by Philip Cooke, Mario Davide Parrilli and José Luis Curbelo

Localized creativity, small high-tech entrepreneurship, related innovation platforms, social capital embedded in dynamically open territorial communities and context-specific though continuously upgrading policy platforms are all means to face new challenges and to promote increased absorptive capacity within local and national territories. The contributors illustrate that these capabilities are much needed in the current globalized economy as a path towards sustainability and for creating new opportunities for their inhabitants. They analyse the challenges and development prospects of local/regional production systems internally, across territories, and in terms of their potential and territorial connectivity which can help exploit opportunities for proactive policy actions. This is increasingly relevant in the current climate, in which the balanced allocation of resources and opportunities, particularly for SMEs, cannot be expected to be the automatic result of the working of the market.

Chapter 9: Outward FDI from Developing Countries MNEs as a Channel for Technological Catch-up

Alessia Amighini, Roberta Rabellotti and Marco Sanfilippo

Subjects: economics and finance, economics of innovation, industrial economics, regional economics, innovation and technology, economics of innovation, urban and regional studies, regional economics


9. Outward FDI from developing country MNEs as a channel for technological catch-up* Alessia Amighini, Roberta Rabellotti and Marco Sanfilippo 1. INTRODUCTION An increasingly important aspect of globalization is the growing number of developing country multinational enterprises (MNEs).1 This is demonstrated by the annual Fortune ‘Global 500’ ranking of the top 500 MNEs across the world: in 2009, 86 companies in the list were from developing countries, compared to 69 in 2007 and only 19 in 1990. These companies are small relative to the world’s largest MNEs, they are owned by developing country nationals (in some cases with government a major capital shareholder), and operate on a global basis through subsidiaries, outsourcing and integration in global value chains (GVCs) and global production networks (GPNs) (UNIDO, 2006). According to the United Nations Conference on Trade and Development  (UNCTAD, 2009), outflows of foreign direct investment (OFDI) from developing and transition economies reached 19 per cent of world total in 2008. Asia has the highest level foreign direct investment (FDI) outflows, but this trend is spreading to all regions. In terms of stocks, developing countries account for more than 15 per cent of the world total, with the following regional composition: Asia 65.7 per cent of total stock, followed by Latin America with 21.7 per cent, the transition economies with 8.7 per cent and Africa with 4 per cent. Within each region, a few countries play the leading role: China, India and the Association of South East Asian Nations (ASEAN) countries in...

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