Abstract
The impact of innovation on every economy cannot be overemphasized. Hence, this study investigates empirically the impact of inward FDI on host firms’ innovation in Nigeria and South Africa using t...
Highlights
Foreign Direct Investment (FDI) enhances productivity and economic growth via the infusion of innovation into host firms
As a result of the theoretical and empirical inconclusiveness established and the contextual gap, our study investigates the effect of FDI flow on host firm innovation in South Africa and Nigeria
This study set out to investigate empirically the impact that FDI has on firm innovation in Nigeria and South Africa
Summary
Foreign Direct Investment (FDI) enhances productivity and economic growth via the infusion of innovation into host firms. In their study, Dachs and Ebersberger (2009) established that membership of multinational enterprise group significantly improves firm’s innovative ability by way of assisting the firm to overcome innovation obstacles such as lack of financial resources, lack of technological and market information or organizational problems. In supporting these studies, Ghazel and Zulkhibri (2015) and Khachoo and Sharma (2016) in their separate studies noted that FDI is a good catalyst in the innovative abilities of host firms. As a result of the theoretical and empirical inconclusiveness established and the contextual gap, our study investigates the effect of FDI flow on host firm innovation in South Africa and Nigeria.
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