Foreign direct investment (FDI) provides recipient countries with access to new technologies and generates knowledge spillovers for domestic firms and additional investment in research and development (R&D). In the last 15 years FDI flows have tripled. FDI inflows to Europe still exceed those to the rest of the world, but FDI flows to China and the rest of South-East Asia have leapt from an average of about USD 50 billion a year in 1995-99 to about USD 150 billion a year in the latest period. The United States remains the biggest recipient and investor, with China set to become the second largest FDI recipient.