Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter?

• Type: Article in International Scientific Journal
• Date: 2014

Authors

Aurora A C Teixeira (Author) FEP; Ana Teresa Tavares Lehmann (Author) FEP

Journal

Title: Research Policy

Vol. 43

Pages: 737-748

ISSN: 0048-7333

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 45 Citations

ISI Web of Science

Scopus - 49 Citations

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

CORDIS: Social sciences > Economics

Other information

Authenticus ID: P-009-9PK

DOI: 10.1016/j.respol.2014.01.001

Abstract (EN): This paper contributes to the scarce empirical literature on the impact of foreign ownership on human capital intensity. New evidence is provided, based on a comprehensive, large-scale survey of technology-based firms located in Portugal.The key findings are that: (1) foreign ownership directly (and significantly) impacts a firm's general human capital (education); (2) foreign ownership indirectly (and significantly) impacts a firm's specific human capital (skills); (3) the total impact of foreign ownership on a firm's human capital intensity is higher for education- (general) than for skills- (specific) related human capital intensity. Giving the critical importance of both FDI and human capital development for an 'intermediate' economy like Portugal (lagging behind in terms of human capital stock, and seeming to have lost part of its attractiveness as an FDI location), the paper discusses related policy implications. It is believed that our results and conclusions may be useful for other countries facing similar challenges.

Language: English

Type (Professor's evaluation): Scientific

Notes: In press

No. of pages: 12