Findings from research investigating whether foreign direct investment (FDI) is related to higher or lower innovation performance have been inconsistent. This study aims to clarify the impact of FDI on innovation performance and examines the moderating role of sampling region, enterprise type, proxy index of innovation performance and measurement dimensions.
Based on 88 domestic and foreign empirical studies on the relationship between FDI and innovation performance in China, a meta-analysis clarified the impact of FDI on innovation performance and explored the reasons for the heterogeneity of prior research conclusions to deepen our understanding of the FDI–innovation performance link.
FDI had a significantly positive impact on innovation performance. Moreover, the FDI–innovation performance link was moderated by sampling region, enterprise type, proxy index of innovation performance and measurement dimensions.
This study offers empirical evidence regarding the “true” relationship between FDI and innovation performance based on large samples. It also proposes practical suggestions, such as actively introducing foreign capital, implementing supporting policy in relatively underdeveloped areas and improving high-tech enterprises' absorptive capacity.
