George Korres, PhD, Geography, University of the Aegean, 17 Rizou Neroulou Str, Athens, 11141, Greece
Foreign Direct Investment and the Effects on Technical Change and Regional Growth in Europe
Abstract:
Research and Development (R&D) and technical change are both directly related to industrial infrastructure conditions, modernization process, productivity levels, regional and socio-economic growth. Technological change caused by Foreign Direct Investments (FDIs) usually widens the socio-economic gap and divergence between different regions (concentration effect), whereas technological imitation, transfer and diffusion tend to enhance regional convergence and cohesion (diffusion effect). This paper attempts to investigate the relation between FDIs, technical change and regional growth. Additionally, it aims to estimate the impact of technical change generated by FDIs on regional growth, and uses the theory and empirical evidence in an investigation of the implications of FDIs, and research activities at the regional and economic growth.
Key Words: Technical Change, Foreign Direct Investment, Innovation, Diffusion, modernisation, competitiveness, economic and regional growth.
George M. Korres[1], and Aikaterini Kokkinou[2]
[1]Corresponding Address: Associate Professor Dr. George M. Korres, Department of Geography, University of the Aegean, 17 Rizou Neroulou Street, Athens: 11141, Greece. Tel.: (+30)-6972188897, Email: gkorres@hol.gr and gkorres@geo.aegean.gr
[2] Corresponding Address: Aikaterini Kokkinou, Department of Economics, University of Glasgow, Adam Smith Building, G12 8QQ, Glasgow, Scotland, UK, Tel.: (+30)-6972418402, Email: katerinakokkinou@hotmail.gr.