FOREIGN DIRECT INVESTMENT OF TNCS AS A FACTOR OF INNOVATION DEVELOPMENT
Abstract
This article considers modern approaches to the impact of foreign direct investment (FDI) of TNCs (transnational corporations) on innovative development, examines the cumulative effect of technology transfer, and highlights the main factors stimulating economic growth. The technological effect has been studied on the example of creating branches of foreign companies, intensifying competition with national companies, which stimulates productivity, as well as promotes the transfer of new forms and methods of management, skills in production, and business culture by national producers.Based on the analysis of innovative projects, statistical data from UNCTAD and other international organizations, the trend of declining FDI inflows in the world as a whole and individual countries, reducing the number of mergers and acquisitions (M&A) of TNCs in the COVID-19 pandemic investigated. Research and new technologies are considered as the basis for the success of the Top 50 – the most innovative companies that give impetus to the development of knowledge-intensive industries. The application of a comprehensive integration strategy of TNCs through the transformation of a fragmented production system in the production and distribution network is determined. The strategy is implemented at the global or regional levels. The tendencies of development of innovative TNCs at the expense of increase of knowledge-intensive technologies creation, an increase of their efficiency because of the use of advantages of the international movement of the capital, and placement of new innovative branches are defined. The importance of development research and development work (R&D) is the main factor in the progress of radical innovations that underlie the success of innovative companies around the world. The advantages of using knowledge-intensive technologies to increase the efficiency of TNC production and taking advantages of global value chains are noted. Cross-border mergers and acquisitions applied in the strategy of TNCs to develop international markets and achieve technological leadership through the effective use of global production systems are considered.
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References
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