Impact of foreign ownership on innovation

Prior research provides evidence on the impact of ownership structures on corporate performance. One attribute of corporate performance is the technological achievement. Foreign ownership might have positive impact on technological achievement through increase in research and development (R&D) intensity or technology transfers. The aim of this study is analyze the impact of foreign ownership on both R&D intensity and technological achievement measured by patents and patent applications in a developing country context. When interpreted together, results suggest that technological achievement is mostly related to internationalization of the firm both through trade and ownership in addition to size and R&D intensity.