INTERNATIONAL TECHNOLOGY TRANSFER IN THE RUSSIAN ECONOMY - THE EFFECT OF FOREIGN DIRECT INVESTMENT SPILLOVERS

Abstract

Russia is a transitional economy strongly relying on exports of natural resources. However, the political leadership has acknowledged the need to make Russia more high-tech oriented. In the realization of this goal, foreign technology transfer plays a very important role. The paper estimates foreign companies’ role in the Russian economy and the potential of Russian economy and local companies to receive positive spillovers from foreign direct investments and spillovers from local affiliates of multinational enterprises provides an important and cheap channel of direct technology transfer. licensing of technology and intellectual property to an existing business is another channel, and is often a preferred option if a ready route to market exists. Technology transfer can also happen through international trade. Using Russian and international statical data, the authors assess the impact of technology transfer in the Russian economy.

Keywords

• international technology transfer
• russian economy
• foreign direct investment
• spillover