The World Investment Report 2005, published by the United Nations Conference on Trade and Development (UNCTAD), examines the latest trends in foreign direct investment (FDI). It also analyses the internationalisation of R&D by transnational corporations. The report is divided into two main parts, corresponding to these two trends, which are examined for their implications on development.

The report indicates that FDI flows resumed growth in 2004, and that flows of FDI to developing countries have led the recovery, whereas FDI inflows among developed countries have continued to decline. It also highlights the surge in R&D internationalisation by transnational corporations, and the growing complexity of R&D activities undertaken by multinationals in a few select developing countries. In addition, the report emphasises that acquiring countries (countries receiving inflows of FDI) should have coherent policies to promote beneficial R&D interactions between transnational corporations and domestic organisations.


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