Dynamics of Technology Spillover through Foreign Direct Investment in Thailand under RD Consortia Policy

摘要

Foreign Direct Investment (FDI) is one of the key factors that drive the economy of FDI recipient countries. Foreign enterprises provide more jobs with higher compensation to local workers (Williams 1999; Conyon et al. 2002; McDonald, Tüselmann, and Heise 2002; Bandick 2004; Lipsey and Sjöholm 2004; Martins 2004; Fu and Balasubramanyam 2005; Girma and Gorg 2007; Heyman, Sjoholm, and Tingvall 2007) and also transfer technology and operational practices from the multinational firms' headquarters to their local subsidiaries which increase the country's production output (Baranson 1970; Contractor and Sagafi-Nejad 1981). Moreover, the presence of foreign firms in the industry makes the productivity of domestic firms in the related industries increase even though they have no direct interaction with the foreign firms, which also improves the welfare of the host countries (Sawada 2005). This phenomenon is called "technology spillover".