Suchergebnisse

In the context of intensified global competition, enhancing attractiveness to foreign direct investment (FDI) in high-value knowledge-intensive sectors is a policy objective in many advanced economies. Understanding what drives the location choice of FDI in high-value knowledge-intensive sectors is important for designing such policies. This research report provides novel evidence on factors and policies underlying the attractiveness of Ireland and Northern Ireland to FDI in high-value knowledgeintensive sectors. Furthermore, this research explores opportunities for policy coordination on the island of Ireland that could enhance the attractiveness of both jurisdictions on the island to high-value FDI. The following knowledge-intensive sectors are included in the analysis: aerospace, biotechnology, pharmaceuticals, medical devices, semiconductors, business machines and equipment, electronic components, consumer electronics, communications, software and IT services, financial services, business services, and space and defence. The research focuses on new greenfield FDI projects - new operations established by foreign companies at new sites on the island of Ireland and the rest of the EU and UK over the period 2003-2020. The analysis uses a newly generated dataset combining information from a range of data sources. Information on new greenfield FDI projects established on the island of Ireland and across EU and UK regions and countries over the past two decades (sourced from the Financial Times fDi Markets database) are combined with data on location-specific factors that influence the location choices of FDI projects (sourced from the European Commission, Eurostat and OECD).

We relate the technological and factor price determinants of inward and outward foreign direct investment (FDI) to its potential productivity and labour market effects on both host and home economies. This allows us to distinguish clearly between technology‐sourcing and technology‐exploiting FDI, and to identify FDI that is linked to labour cost differentials. We then empirically examine the effects of different types of FDI into and out of the UK on domestic (i.e. UK) productivity and on the demand for skilled and unskilled labour at the industry level.

It is often assumed that foreign Multinational enterprises (MNEs) are the driving force behind technological development in developing economies but it has become evident in recent years that the actions of MNEs in isolation from the domestic economy will not significantly improve the stock of technology in an economy. There is evidence that linkages between MNEs and local firms are important in explaining technological effort by local firms but direct technological assistance from MNEs does not seem to play a major role in fostering increased technological effort by local firms. (DSE/DÜI)

Over the past 30 years, the United Kingdom (UK) has performed exceptionally well in consistently attracting significant volumes of inward foreign direct investment (IFDI). Of all foreign affiliates located in the EU-27 in 2010, 15% were in the United Kingdom (more than 45,000 affiliates). These foreign affiliates employed over 3.7 million workers, representing 13% of the employed UK labor force. IFDI stock represented an impressive 48% of the United Kingdom's GDP in 2009, as well as in 2010, when it reached US$ 1.1 trillion, the second largest globally after that of the United States. IFDI flows, which declined considerably in 2008 as well as 2009 and 2010, amounted to US$ 51 billion in 2010 and were just over 20% of gross fixed capital formation. According to UNCTAD data, in 2011, IFDI stock in the United Kingdom rose to US$ 1.2 trillion and IFDI flows, to US$ 54 billion. The recent global financial and economic crisis has had a significant negative impact on the investment of foreign multinational enterprises (MNEs) and has interrupted the upward trend in UK IFDI seen till then. However, it is hoped that the continued strength and the location of the UK economy, together with coordinated policy measures by the Government, will lead to a renewed surge in IFDI.