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IJSTR >> Volume 3- Issue 7, July 2014 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Innovation, Foreing Direct Investment And Challenges For Government Reform

[Full Text]



Emir I.Hajdini, Hajdini



Keywords: Foreing Direct Investments, research and development, transition economies



ABSTRACT Multi-national Corporations (MNC) are being playing a major role on research and development, not only through activities in their home country but also in host countries through investments. The globalization of R&D is not a new phenomena, the novel element lays in the accelerated steps these last year. However the geographic disperse of R&D, realized through their branches, is not homogenous and only a few economic communities have taken the major part. It is obvious that the abilities host economies posses to attract FDI’s are subject to political, economical legal national culture and off course to physical and human infrastructure in line with economical objectives and economic national economies. An ever growing number of countries have developed a positive stance toward FDI’s that bears R&D, considering this a way to scale up their competitiveness. The total flux of FDI in Albania is significantly risen, from 258 mil $ in 2006 in 705 mil$ in 2009 në 1.190 bill. $ in 2011. The foreign direct investments have been in positive trends despite the global and regional financial and economical crisis, evidently reflecting a continuing rise through 2012. (Report of Foreign Investments 2011). However, the Republic of Albania scores in the 25th position, this number can be advance to 20.This article aims at establishing a framework for the exploration of the obstacles to attract R&D relating FDI’s and present the reasons for this moderate success on behalf of Albania. First off, the factors that impacts globalization are presented, followed by major reasons why a certain country has been chosen. The main obstacles on attracting these investment are been analyzed. Finally the findings are presented.



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