Title: Uneven geographical distribution of R&D-related foreign direct investment in Latin America: uncovering the paradox of national development

Authors: Carlos Loaiza Alamo

Addresses: Facultad de Ciencias Económicas y Empresariales, Universidad Autónoma de Madrid (UAM), C/ Francisco Tomás y Valiente, 5, 28049 Madrid, Spain

Abstract: R&D-related FDI can bring substantial benefits to host territories, but it may also reinforce divergences in development, leaving some areas economically behind. In this study, I analyse the spatial distribution of R&D-related FDI as a proxy of innovation in Latin America, both between and within countries, using manufacturing FDI activities as a benchmark. The study uses the fDi markets database to identify locations of R&D greenfield investments in 14 Latin American countries over the period of 2007-2017. The findings highlight the paradox between the benefits that host cities receive from R&D-related FDI and the uncertain future for no-host territories. Balanced regional development policies are critical to facilitate innovation promotion and address the broader need for a more equitable distribution of the benefits of such initiatives across the entire nation.

Keywords: R&D FDI; concentration; Latin America; innovation systems; national divergencies.

DOI: 10.1504/IJTLID.2024.140318

International Journal of Technological Learning, Innovation and Development, 2024 Vol.15 No.4, pp.347 - 369

Received: 10 May 2023
Accepted: 14 Aug 2023
Published online: 02 Aug 2024 *

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