This paper asks whether there is evidence of higher innovation output from firms where there is more foreign activity … in terms of foreign direct investments (FDI), trade and collaboration on innovation, or if proximity between innovators … innovation. The most important aspect of the local milieu on innovation is skilled labour. …

We investigate whether inward FDI, either at the firm or industry level, has any impact on product innovation by … that export, invest in human capital or R&D, or have prior innovation experience. We also find that SOEs with internal R …

characteristics of the innovation systems at national and regional levels. The paper studies two phenomena. First, what novelties are … brought into the host region (country) when FDI inflows occur? Second, what are the consequences for the innovation intensity … are based on CIS data (Community Innovation Survey III). The paper contributes to earlier studies in two important ways …