The Importance of Clusters for Spillovers from Foreign Direct Investment and Technology Sourcing
This paper examines the link between cluster development and inward foreign direct investment. The conventional policy approach has been to assume that inward foreign direct investment (FDI) can stimulate significant clustering activity, thus generating significant spillovers. This paper investigates if clusters can generate significant productivity spillovers from FDI, this only occurs in pre-existing clusters.
Link
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=904500