The Effect of Innovation Components on the Inflow of Foreign Direct Investment

With the emergence and expansion of the globalization phenomenon and the deepening of interactions and economic and trade relations between the countries of the world, the role and place of attracting foreign capital in the patterns of growth and development have become very important for countries that are facing financial difficulties, in a way that since the 80s, new factors and variables have been proposed as the stimulus for attracting foreign direct investment and have attracted the attention of economists. Therefore, according to this necessity, the purpose of the current research is to investigate the relationship between innovation and the inflow of foreign direct investment in the top 47 science-producing countries in the world from 2011 to 2020. For this purpose, the econometric approach of dynamic panel data and dynamic generalized moments estimator have been used to estimate the model. The results of the research model show that all the studied variables with different estimated coefficients have a positive and significant effect on foreign direct investment in a way that the improvement of each of the five variables of innovation inputs and the variable of corruption control, exchange rate, and degree of development of the countries used as control variables increases the volume of foreign direct investment in this category of countries.