Research and Development (R&D) and technical change are both directly related to industrial infrastructure conditions, modernization process, productivity levels, regional and socio-economic growth. Technological change caused by Foreign Direct Investments (FDIs) usually widens the socio-economic gap and divergence between different regions (concentration effect), whereas technological imitation, transfer and diffusion tend to enhance regional convergence and cohesion (diffusion effect). This paper attempts to investigate the relation between FDIs, technical change and regional growth. Additionally, it aims to estimate the impact of technical change generated by FDIs on regional growth, and uses the theory and empirical evidence in an investigation of the implications of FDIs, and research activities at the regional and economic growth.

Inside to the Black-Box: The Implications of Foreign Direct Investment and Innovation Activities in European Union, Charalambos Louca, George M. Korres, Efstratios Papanis and Maria Michailidis, Journal of Regional Socio-Economic Issues, Volume 10, Special Issue 1, January 2020, pp.: 52-71.

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