Moving beyond FDI and Clusters: Platform Perspective towards Mutual Value Creation

Abstract

This paper integrates two independent studies of foreign direct investment and cluster through platform perspective. In order to sustain and maximize rent creation for both the investing firm and the host country, this paper suggests a shift in our perspective from exploiting advantages unilaterally to creating values mutually. Four factors, compatibility, complementarity, connectivity and commerciality, are presented to have positive impacts on sustaining value co-creation and maximizing spillover effects. The four factors, carefully chosen through rigorous studies from the platform perspective as well as other relevant studies, give meaningful implications for carrying out effective and sustainable ODA and CSR activities as well.