Bringing science and development together through news and analysis

World Investment Report 1999: Foreign direct investment and the challenge of development

This report published by UNCTAD examines the impact of foreign direct investment (FDI) on several aspects of economic development, including technological development. Chapter six, particularly, focuses on the relationship between foreign direct investment and the building up of technological capabilities in host countries.

Referring to the impact of FDI in enhancing the technological capabilities of host developing countries, the report concludes that FDI is not a cure-all for technological development. The potential benefits of FDI for technological development are considerable, but the realisation of these benefits depends greatly on existing local capabilities and technological learning. This demands a strong role for government policy in attracting quality FDI, upgrading local capabilities to optimise the transfer of transnational corporations' technologies and the ability to foster its dissemination.

{{LINK_LABEL_GO_TO_DOCUMENT}}