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Determinants of Innovative Activities: Evidence from Europe and Central Asia Region

Lau, Marco Chi Keung, Yang, Fu Steve, Zhang, Zhe and Leung, Vincent K. K. (2015) Determinants of Innovative Activities: Evidence from Europe and Central Asia Region. The Singapore Economic Review, 60 (1). ISSN 1793-6837

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Abstract

Recent studies in the innovation literature show that Foreign Direct Investment (FDI) enhances innovations in recipient countries through spill-over effects. In this paper we extend the existing literature by incorporating the corruption index in the estimation procedure. Using a cross-country analysis from the Europe and Central Asia (ECA) region, covering 57 countries over the period of 1995–2010, we find no evidence of FDI spill-over effects on innovations, when corruption is endogenously modelled in the regression. Interestingly, we find that corruption and expenditure on education sector are positively related to the number of patents applications, suggesting anti-corruption programs encourage innovations that promote economic growth. Our study shed light on the national innovations and anti-corruption programs.

Item Type: Article
Uncontrolled Keywords: Foreign direct investment; Corruption; Technology transfer
Subjects: H Social Sciences > HD Industries. Land use. Labor
Schools: Huddersfield Business School
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Depositing User: Jonathan Cook
Date Deposited: 15 Nov 2017 10:00
Last Modified: 15 Nov 2017 10:00
URI: http://eprints.hud.ac.uk/id/eprint/33904

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