The impact of OFDI in global cities on innovation by Indian multinationalsAmendolagine, V. ORCID: https://orcid.org/0000-0002-5699-5233, Piscitello, L. ORCID: https://orcid.org/0000-0002-4817-315X and Rabellotti, R. ORCID: https://orcid.org/0000-0001-7637-3645 (2022) The impact of OFDI in global cities on innovation by Indian multinationals. Applied Economics, 54 (12). pp. 1352-1365. ISSN 1466-4283 Full text not archived in this repository. It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing. To link to this item DOI: 10.1080/00036846.2021.1976383 Abstract/SummaryWe investigate the impact of Outward Foreign Direct Investment (OFDI) on the innovation performance of Indian multinationals by analysing their choice of entry mode (cross-border acquisitions versus greenfield investments) and their international location decisions (i.e. choice to locate in a global city). We rely on an augmented fractional logit estimator for 170 foreign investments in high- and medium-high tech manufacturing sectors in the period 2003 to 2011 and find that: (i) compared to greenfield investments, acquisitions generate more technological opportunities; (ii) location in a global city has a negative impact on the Indian companies’ innovation performance; (iii) the positive effect of acquisition decreases if the investment is focused on a global city. These findings should be informative for both firms and government authorities involved in developing going-global strategies.
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