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RELATIONSHIP BETWEEN INNOVATION PERFORMANCE AND FOREIGN DIRECT INVESTMENT FLOWS
Abstract
The paper provides empirical analysis of the relationship between country level innovation performance and foreign direct investment (FDI) flows, namely inward and outward FDI. The increase in the volume of foreign direct investment flows is according to the most influential theories of FDI the important accelerator of the countries´ economic growth and innovation capabilities resulting to increase in international competitiveness. In this light, the object of our interest is to verify the existence and the strength of the relationship between FDI flows and research and innovation performance of the Visegrad countries, namely Slovakia, the Czech Republic, Poland and Hungary in the period of 2009 - 2016. For the purpose of our analysis macro level country data are used, primarily the composite annual European Innovation Scoreboard and FDI/TNC database of UNCTAD. The results of correlation and regression analysis indicate that outward foreign direct investment is a statistically significant determinant of countries´ innovation performance.
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