FDI Perspective No. 84: “Inward foreign direct investment: Does it enable or constrain domestic technology entrepreneurship?,” by Saurav Pathak, André Laplume and Emanuel Xavier-Oliveira.

There are potential negative effects of FDI on domestic technology-based entrepreneurship in developing countries. Crowding effects in the labor and product markets combined with stronger intellectual property regimes that prevent knowledge spillovers may stifle technology entrepreneurship where it is needed most.

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