TY  - JOUR
AU  - Branstetter,Lee
TI  - Is Foreign Direct Investment a Channel of Knowledge Spillovers? Evidence from Japan's FDI in the United States
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8015
PY  - 2000
Y2  - November 2000
UR  - http://www.nber.org/papers/w8015
L1  - http://www.nber.org/papers/w8015.pdf
N1  - Author contact info:
Lee G. Branstetter
Heinz College
School of Public Policy and Management
Department of Social and Decision Sciences
Carnegie Mellon University
Pittsburgh, PA  15213
Tel: 412/268-4649
E-Mail: branstet@andrew.cmu.edu
AB  - Recent empirical work has examined the extent to which international trade fosters international  spillovers' of technological information.  FDI is an alternate, potentially equally important channel for the mediation of such knowledge spillovers.  I introduce a framework for measuring international knowledge spillovers at the firm level, and I use this framework to directly test the hypothesis that FDI is a channel of knowledge spillovers for Japanese multinationals undertaking direct investments in the United States.  Using an original firm-level data set on Japanese firms' FDI and innovative activity find evidence that FDI increases the flow of knowledge spillovers both from and to the investing Japanese firms.
ER  -