How do human capital and R&D structure facilitate FDI knowledge spillovers to local firm innovation? a panel threshold approach

2021 
This paper examines how local firms’ structure of human capital and RD while above the second threshold, the FDI turns to an insignificant impact. Besides, when RD otherwise, the effect of FDI is insignificantly negative. Our findings highlight the importance of human capital and R&D structures in local firms’ absorptive capacity. Local organizations need to keep diversifying their human capital and R&D strategies to learn from FDI knowledge but avoid allocating their efforts evenly upon sub-categories within the two resources.
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