The effect of foreign direct investments on innovation and technology transfer

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
Publishing House of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University
The aim of the paper is to study impact of foreign direct investment on the innovation and technology transfer. Foreign direct investment is a major driver of globalization, economic growth and industrialization. FDI has a particular impact on technological development, productivity and growth, and the acquisition and improvement of new knowledge or skills. FDI inflows would increase countries' R&D and innovation activities. For the purpose of the study, the paper analyzes the positive and negative impact of foreign direct investment on the development of the country, draw special attention to the role of foreign direct investment in innovation and high technology transfer in transition economy countries. The paper examines the dynamics of foreign direct investment in Georgia. The Government investment policy is presented, which is related to the attraction of quality investments in the real sector of the economy, the implementation of investments in high-tech sectors and the transfer of knowledge and technologies. The authors investigated technology and innovation and linked it with Global Innovation Index.
1. პირდაპირი უცხოური ინვესტიციების (FDI) გაანგარიშების მოკლე მეთოდოლოგია და პრაქტიკა საქართველოში (საქსტატი, 2019 წ) 2. L. Totladze. The Impact of Government Expenditure on Education and R&D as Factor of Homan Capital on Economic Growth. International Scientific Analytical Journal “Ekonomisti” 2020, #2. ISSN 1987- 6890 3. ლ. თოთლაძე, მ. ხუსკივაძე. Covid-19 გავლენა პირდაპირდაპირი უცხოური ინვესტიციების დინამიკაზე. საერთაშორისო სამეცნიერო კონფერენცია: „თანამედროვე ეკონომიკა, ეკონომიკური მეცნიერება და ეკონომიკის პანდემიური პრობლემები: გამოწვევები, გადაჭრის გზები“. თბილისი 2020. 4. GHERIBI E., VOYTOVYCH N. Prospects of Foreign Direct Investments in Technology Transfer. Economic and Environmental Studies. Vol. 18, No 2 (46/2018). ISSN 2081-8319. Available at: 5. Global Innovation Index 2020. Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO), 2020. Available at: 6. Gorodnichenko Y. Auerbach A. Effects of Fiscal Shocks in a Globalized World. 15th Jacques Polak Annual Research Conference the International Monetary Fund Washington, 2014.; 7. Guersoy F., Kalonçou H. Foreign Direct investment and Growth Relationship in Georgia. International Journal of Economics and Financial Issues 2, 2012 8. Foreign direct investment, the transfer and diffusion of technology, and sustainable development. United Nations Conference on Trade and Development. UNCTAD, 2010; 9. 10.
Foreign Direct Investment, Innovation, Technology Transfer, Global Innovation Index
Proceedings of Materials of International Scientific Internet Conference: Economic Problems of Modern World. 2020, pp.138-142