Regional innovation and the retention of foreign direct investment: a place-based approach

Abstract

ABSTRACT The relationship between regional innovation and foreign direct investment (FDI) has been extensively examined, but the impact of regional innovation on FDI retention has received scant attention. Drawing on the logic of place-based approaches, the paper investigates this impact by conducting survival analyses on data collected across 31 provinces of China. We find that regional technician supply (RTS) and regional intellectual property flexibility (RIPF) help regions retain foreign ventures. However, RTS is less likely to retain the foreign investments of multinational enterprises with large research and development expenditure, while RIPF is more likely to retain them. Theoretical and policy implications are discussed.