FDI as a Source of Patent Activity in V4

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Technická Univerzita v Liberci
Technical university of Liberec, Czech Republic
The foreign direct investment (FDI) have played an irreplaceable role during the transformation processes in Visegrad Four (V4) countries contributing to successful transition from central planned to market-based economy system, bringing new technologies, capital sources, know-how in many areas leading to higher productivity and above average economic growth, and they contributed to increasing competitiveness. The current challenges these economies face are twofold - first, it is a need for a strategic shift from the growth and competitiveness fuelled very much by the low cost labour force to a qualitatively new model based on creative and knowledge based aspects; second, it is an overall economic downturn, which affects smaller and open economies very significantly, since they are still dependant on external sources of growth like foreign demand. Generally, in the current fragile economic situation around the globe the innovative approach is seen as a chance for recovery bringing new effective solutions for companies, households and even states, more over it can also contribute to tackle global challenges. Despite the general tendency of research outcomes towards more complex and sophisticated composite indexes measuring competitiveness and innovations, the paper is focused on examining and testing of selected input and output indicators, namely FDI and their influence on the dynamics of patent indicators, namely total FDI inward stocks to the region and number of patent applications. The paper particularly analysis the relation of FDI inward stocks coming to the V4 region from the 15 most innovative countries according to the Global Innovation Index 2012 and the number of patent applications during the years 200-2010.
foreign direct investment, competitiveness, innovation, patent, Visegrad Four, Czech Republic