Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment

This note seeks to provide an overview of investment incentive policy as a tool for Governments seeking to promote technology transfer and productivity spillovers by multinational enterprises (MNEs) in the host economy to local firms and suppliers....

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Main Authors:	Sabha, Yassin, Liu, Yan, Douw, Wim
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	INVESTMENT INCENTIVES FOREIGN DIRECT INVESTMENT FDI BACKWARD LINKAGE GLOBAL VALUE CHAIN INVESTMENT CLIMATE
Online Access:	http://documents.worldbank.org/curated/en/354781589316916550/Investment-Linkages-and-Incentives-Promoting-Technology-Transfer-and-Productivity-Spillovers-from-Foreign-Direct-Investment-FDI http://hdl.handle.net/10986/33760

id	okr-10986-33760
recordtype	oai_dc
spelling	okr-10986-337602021-05-25T10:54:44Z Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment Sabha, Yassin Liu, Yan Douw, Wim INVESTMENT INCENTIVES FOREIGN DIRECT INVESTMENT FDI BACKWARD LINKAGE GLOBAL VALUE CHAIN INVESTMENT CLIMATE This note seeks to provide an overview of investment incentive policy as a tool for Governments seeking to promote technology transfer and productivity spillovers by multinational enterprises (MNEs) in the host economy to local firms and suppliers. It summarizes international experiences to demonstrate what has worked and what has not worked, as well as the advantages and disadvantages of different investment incentive schemes. Evidence suggests that backward linkages between MNEs and local suppliers are the most important channels for technology and productivity spillovers to local firms (Jordaan et al, 2020). Furthermore, backward linkages offer an important avenue for ambitious local firms to integrate into Global Value Chains (GVCs). However, several market failures and challenges often prevent backward linkages from materializing. Policy makers can use investment incentives and other policy tools to help address these challenges. This note highlights examples of investment incentive schemes used by Governments, as well as their pros and cons. 2020-05-18T14:09:13Z 2020-05-18T14:09:13Z 2020-05-01 Brief http://documents.worldbank.org/curated/en/354781589316916550/Investment-Linkages-and-Incentives-Promoting-Technology-Transfer-and-Productivity-Spillovers-from-Foreign-Direct-Investment-FDI http://hdl.handle.net/10986/33760 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INVESTMENT INCENTIVES FOREIGN DIRECT INVESTMENT FDI BACKWARD LINKAGE GLOBAL VALUE CHAIN INVESTMENT CLIMATE
spellingShingle	INVESTMENT INCENTIVES FOREIGN DIRECT INVESTMENT FDI BACKWARD LINKAGE GLOBAL VALUE CHAIN INVESTMENT CLIMATE Sabha, Yassin Liu, Yan Douw, Wim Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment
description	This note seeks to provide an overview of investment incentive policy as a tool for Governments seeking to promote technology transfer and productivity spillovers by multinational enterprises (MNEs) in the host economy to local firms and suppliers. It summarizes international experiences to demonstrate what has worked and what has not worked, as well as the advantages and disadvantages of different investment incentive schemes. Evidence suggests that backward linkages between MNEs and local suppliers are the most important channels for technology and productivity spillovers to local firms (Jordaan et al, 2020). Furthermore, backward linkages offer an important avenue for ambitious local firms to integrate into Global Value Chains (GVCs). However, several market failures and challenges often prevent backward linkages from materializing. Policy makers can use investment incentives and other policy tools to help address these challenges. This note highlights examples of investment incentive schemes used by Governments, as well as their pros and cons.
format	Brief
author	Sabha, Yassin Liu, Yan Douw, Wim
author_facet	Sabha, Yassin Liu, Yan Douw, Wim
author_sort	Sabha, Yassin
title	Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment
title_short	Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment
title_full	Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment
title_fullStr	Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment
title_full_unstemmed	Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment
title_sort	investment linkages and incentives : promoting technology transfer and productivity spillovers from foreign direct investment
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/354781589316916550/Investment-Linkages-and-Incentives-Promoting-Technology-Transfer-and-Productivity-Spillovers-from-Foreign-Direct-Investment-FDI http://hdl.handle.net/10986/33760
_version_	1764479459137683456

Investment Linkages and Incentives : Promoting Technology Transfer and Productivity Spillovers from Foreign Direct Investment

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