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http://dx.doi.org/10.13106/jafeb.2021.vol8.no1.655

Spillover Effects of FDI on Technology Innovation of Vietnamese Enterprises  

HOANG, Duc Than (School of Trade and International Economics, National Economics University)
DO, Anh Duc (School of Trade and International Economics, National Economics University)
TRINH, Mai Van (Department of Research Management, National Economics University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.1, 2021 , pp. 655-663 More about this Journal
Abstract
This paper aims to develop a conceptual framework for determinants of spillover effects of FDI on technology innovation of Vietnamese enterprises. The research proposes a logistic regression model for assessing how enterprises' ability to implement technological innovation is affected by the presence of FDI enterprises as well as other factors that show the change through the indirect influence of FDI such as the size of the enterprise, the type of enterprise, and the skill level of the labor force or its research and development activities. Five forms of technology innovation are considered: improving production process; product quality improvement; product expansion; expanding business activities into a new field of production; and changing business activities into a new field of production. General Statistics Office of Vietnam provided survey data to collect information from 3,166 enterprises in the manufacturing and processing industry in Hanoi, which were valid for analysis. The results show that all variables of enterprise type, size, R&D, and industry have a positive impact on the selection of one of the innovation forms. Several recommendations are further suggested to take advantage of the positive effects and minimizing the negative effects of FDI for technological innovation of Vietnamese enterprises.
Keywords
Spillover; FDI; Technology Innovation;
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