ABSTRACT
In Chapters 2 to 4 we developed a profound understanding of technology and technology transfer. We now want to develop a meaningful understanding of foreign direct investment (FDI): FDI is generally acknowledged as one of the most important mechanisms for technology transfer. Many regions and countries strive to attract FDI simply to absorb and retain new technologies:
We start this chapter by illustrating historical and recent developments in FDI (Section 5.1).
We deliver a definition of FDI and explain its components (Section 5.2).
Subsequently, we give a description of the various forms of FDI (Section 5.3).
In addition, we describe the various determents influencing the FDI decision of a multinational corporation (Section 5.4).
Finally, we lay out the contribution of FDI to local economies (Section 5.5).
