THE IMPACT OF NORDIC FOREIGN DIRECT INVESTMENT ON INNOVATION AND KNOWLEDGE TRANSFER IN THE BALTIC COUNTRIES

The FDI from the Nordic countries dominate in the Baltic Countries. The Nordic companies invest in various business sectors including the industry and high-tech. Nordic countries are one of the leaders in innovation, patent, industry design and trademark registration. Internalization theories state that host countries benefit from the foreign capital due to “know-how”. The technology and knowledge transfer from the foreign capital companies are defined as even driving force for the economic growth. Thus, the aim of the article is to determine the impact of FDI from the Nordic countries on stimulation of innovations in the Baltic Countries and the interlinkages with the economic growth. The article applies, descriptive statistics and correlation-regression modelling. The findings of the research full fills the gaps in internalization and knowledge transfer theories.