Technological Leadership and Foreign Investors' Choice of Entry Mode

Smarzynska, Beata K.

World Bank, Washington, DC

关键词: ACCOUNTING;    ADVERTISING;    ASSETS;    BANKING REFORM;    CLIMATE;   

DOI  :  10.1596/1813-9450-2314
RP-ID  :  WPS2314

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Developing country governments tend tofavor joint ventures over other forms of foreign directinvestment, believing that local participation facilitatesthe transfer of technology, and marketing skills. The authorassesses joint ventures' potential for such transfersby comparing the characteristics of foreign investorsengaged in joint ventures with those of foreign investorsengaged in wholly owned projects in transition economies inthe early 1990s. Unlike the existing literature, the authorfocuses on intra-industry differences rather thaninter-industry differences in research and development, andadvertising intensity. Empirical analysis shows that foreigninvestors who are technological, or marketing leaders intheir industries, are more likely to invest in wholly ownedprojects than to share ownership. This is true in high- andmedium-technology sectors, but not in industries with lowresearch and development spending. The author concludes thatit is inappropriate to treat industries as homogeneous ininvestigating modes of investment. She also suggests that insectors with high research and development spending, jointventures may present less potential for transfer oftechnology, and marketing techniques than wholly owned subsidiaries.