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Policy Toolkit for Strengthening FDI and SME Linkages

image of Policy Toolkit for Strengthening FDI and SME Linkages

Strengthening linkages between foreign direct investment (FDI) and small and medium-sized enterprises (SMEs) is important to boost productivity and innovation across countries and regions in the OECD and beyond. This policy toolkit offers policy advice to national and subnational governments on how to increase knowledge and technology benefits from FDI on domestic SMEs and the local economy. It presents a conceptual framework for understanding the main enabling conditions and diffusion channels of FDI-SME linkages and spillovers, and a set of diagnostic tools to assess the spillover potential. It also provides an assessment tool for policy and institutional frameworks enabling FDI-SME linkages. This toolkit benefits from insights of a pilot mapping of policy initiatives across the 27 EU Member States, which are described in the second part of the report.

English

Conceptual framework and diagnostic tools

This chapter presents a conceptual framework to assess the enabling conditions and diffusion channels through which FDI affects SME productivity and innovation. It also provides a set of diagnostic tools to benchmark countries and regions according to their potential to benefit from FDI and SME linkages, taking into consideration the type of investment that they attract, the performance of SMEs, as well as economic, structural and geographical factors. Selected indicators are drawn from a range of OECD and non-OECD databases.

English

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