TRAMES, 2007, 11(61/56), 3, 324342


Technology-intensive FDI and economic development in a small country – the case of Estonia

(full text in pdf format)

 Marek Tiits

 University of Tartu and the Institute of Baltic Studies


Abstract. This article reviews the role of foreign direct investment in historic industrialisation experiences of various catching-up economies and aiming at drawsing based on on theseis lessons for policy-making segane lause –mis eesti keeles? in small countries in modern worldsmall countries. The author states advocates that the introduction of a proactive foreign investment strategy is in a small country one of the most effective influential possibilities  means in a small country to for a rapidly increase of the knowledge intensity of the economy. However, Yet, the Estonian innovation policy, has similarly to most of the EU nNew mMember sStates, has strongly under­valued underestimated the power and role of such proactive strategies. The author calls for much better focusing of the activities of foreign investment agencies and closer co-ordination of foreign investmentFDI strategiesy with education, research, employment and other policies.


Keywords: foreign direct investment, R&D and innovation policy, economic development strategy, small countries, Estonia




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