Foreign direct investment and innovation in Europe regions: The moderating role of institutional quality
Mots-clés :
'Foreign direct investment', Innovation, institutional quality, European countriesRésumé
This paper examines the effect of foreign direct investment (FDI) on innovation using country-level data for Europe regions. It also investigates the moderating role of institutional quality in this relationship. The results show that FDI has a negative effect on innovation in the host country. They also reveal that institutional quality plays a moderating role in this relationship. They point out that institutional items do not equally matter in the relationship between FDI and local innovation for Western Europe as for Eastern and Central Europe. These findings highlight the channels through which institutions can boost innovation from FDI.
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© Amal Jaouadi HAMROUNI, Koffi Serge William YAO, Wendzineguemlafi Dieudonné TONDE 2025

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