ABSTRACT
Several analyses have explored and confirmed the beneficial role of foreign direct investment (FDI) in the restructuring of new EU Member States’ (NMS) economies (e.g. Holland et al., 2000; Hunya, 2000; Konings, 2001; Meyer, 1998; OECD, 2002; Rojec, 2000; Damijan and Rojec, 2004). However, the actual impact of FDI varies across the NMS because of differences both in the size and in the sectoral composition of FDI. Although Slovenia has attracted a very small share of FDI relative to some other NMS, the empirical evidence reveals that in both absolute and in relative terms FDI has been a relevant mechanism for increasing innovation activity in the economy. Table 14.1 shows that the fraction of innovative firms among all firms is much higher with foreign subsidiaries than with domestic firms. R&D expenditures and innovation activity of Slovenian firms by type of ownership, 1996–2002 (%) https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">
N
R&D/sales (innovative firms)
R&D/sales (non-innovative firms)
Fraction of innovative firms
All firms
1996
1,454
1.5
0.026
21.7
1998
1,777
1.6
0.003
23.0
2000
2,518
6.0
0.021
21.2
2002
2,564
6.5
0.015
20.6
Domestic
1996
1,148
1.4
0.027
18.6
1998
1,371
1.5
0.003
19.5
2000
1,923
7.1
0.023
17.5
2002
1,935
6.4
0.004
17.3
Foreign
1996
306
1.8
0.023
33.3
1998
406
1.9
0.003
34.7
2000
595
4.1
0.012
32.9
2002
629
6.6
0.055
30.5
Sources: Statistical Office of the Republic of Slovenia; own calculations.