Attracting High Technology Investment

Spar, Debora L.

doi:10.1596/0-8213-4218-5

Cited by 71 publications

(48 citation statements)

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“…For example, Intel in Costa Rica and Shell-BP in Nigeria have made contributions to local universities; in Singapore, the Economic Development Board has collaborated with MNCs to establish and improve training centers, (World Bank, 1995;Spar, 1998;Larraín, López, and Rodríguez-Clare, 2000 linkages as pecuniary externalities. In contrast to knowledge spillovers, pecuniary externalities take place through market transactions.…”

Section: -Preliminary Discussion: Multinationals Knowledge Spillovermentioning

confidence: 99%

Multinationals and Linkages: An Empirical Investigation

Alfaro¹,

Rodrı́guez-Clare²

2004

Economía

103

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Several recent papers have used plant-level data and panel econometric techniques to carefully explore the existence FDI externalities. One conclusion that emerges from this literature is that it is difficult to find evidence of positive externalities from multinationals to local firms in the same sector (horizontal externalities). In fact, many studies find evidence of negative horizontal externalities arising from multinational activity while confirming the existence of positive externalities from multinationals to local firms in upstream industries (vertical externalities). In this paper we explore the channels through which these positive and negative externalities may be materializing, focusing on the role of backward linkages. In particular, we criticize the common usage of the domestic sourcing coefficient as an indicator of a firm's linkage potential and propose an alternative, theoretically derived indicator. We then use plant-level data from several Latin American countries to compare multinationals' linkage potential to that of domestic firms. We find that multinational's linkage potential in Brazil, Chile and Venezuela is higher than for domestic firms. For Mexico, we cannot reject the hypothesis that foreign and local firms have similar linkage potential. Finally, we discuss the relationship between this finding and the conclusions that emerge from the recent empirical literature.JEL Classification: F23, O19, O24

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Section: -Preliminary Discussion: Multinationals Knowledge Spillovermentioning

confidence: 99%

Multinationals and Linkages: An Empirical Investigation

Alfaro¹,

Rodrı́guez-Clare²

2004

Economía

103

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“…CINDE's focus on the electronics sector eventually led to Intel investing in Costa Rica rather than in Brazil, Chile, or Mexico, the other Latin American countries on the TNC's shortlist. In addition to Costa Rica's locationspecific assets, the key determinant of Intel's location choice was the very close collaboration among all relevant agencies to respond to Intel's concerns (Paus 2005;Mortimore and Vergara 2004;Spar 1998).…”

Section: High-tech Fdi In Costa Rica and Mexico: Backgroundmentioning

confidence: 99%

Missing Links: Foreign Investment and Industrial Development in Costa Rica and Mexico

Paus

Gallagher

2007

St Comp Int Dev

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This article offers an analytical framework for understanding the missing links between FDI and development, and applies it to the high technology sectors of Costa Rica and Mexico, the two countries in Latin America that have attracted the highest percentage of FDI in manufacturing. Since the advancement of knowledgebased assets in this sector is at the heart of structural change and development, we focus specifically on the conditions that enable or prevent positive knowledge spillovers from FDI. We identify two main reasons for the missing links between high-tech FDI and the development of indigenous knowledge-based assets in Costa Rica and Mexico. First, their governments did not have a coherent strategy, which would have spelled out the needed government policies to advance national capabilities, overcome market failures, and support the integration of national producers into TNCs' global production networks. Second, there were limitations on the spillover potential from FDI. In Costa Rica and Mexico, technology or scale requirements for inputs made it difficult for large TNCs to source domestically beyond simple inputs like packaging materials. In Mexico, fundamental changes in the organization of global production chains in the computer industry led TNCs to rely on their global contract manufacturers rather than work with potential Mexican input suppliers.

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“…In the case of Intel's first manufacturing plant in Costa Rica, inter-institutional coordination was achieved via a task force chaired by President Figueres (1994Figueres ( -1998 himself (Spar, 1998). The task force was dissolved once its goal was accomplished.…”

Section: Narrativementioning

confidence: 99%

Building Public Capabilities for Productive Development Policies:Costa Rican Case Studies

Cornick¹,

Trejos

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Inter-American Development Bank. This work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose, as provided below. No derivative work is allowed. Terms of use: Documents inAny dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Following a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license. (2013), suggesting adjustments and extensions of that framework. Strong commonalities are found among the cases, notably high technical and political capabilities. All cases likewise involve well-managed organizations, but identifying organizational capabilities proved difficult. While the TOP Capabilities framework may be useful for understanding institutional performance, it has three major weaknesses: i) organizational capabilities are not clearly defined; ii) it does not provide tools for identifying and measuring capabilities ties independently of institutional performance; and iii) it needs to be integrated into a more general framework that takes into account the interactions among the political economy, the Policy Making Process, the institutional setup and TOP capabilities. JEL classifications: D02, F63, L52Keywords: Foreign direct investment, FDI, Industrial policy, Sectoral planning, Institutions, Economic growth * The authors would like...

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Attracting High Technology Investment

Cited by 71 publications

References 0 publications

Multinationals and Linkages: An Empirical Investigation

Multinationals and Linkages: An Empirical Investigation

Missing Links: Foreign Investment and Industrial Development in Costa Rica and Mexico

Building Public Capabilities for Productive Development Policies:Costa Rican Case Studies

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