emerging) on the importance of the innovation framework and local innovation capabilities. Our analysis of 588 R … whereas a host country’s innovation framework and capability overall do affect the location decision, their ultimate effects …, innovation and educational policies and programmes …

We analyze the spillover effect of fixed asset investment incentive on firm innovation by estimating the influence of … asset investment incentive significantly reduces firm innovation. In a simple model, we show that the reduction could arise … because some firms choose to upgrade their technology given the investment incentive, and the upgrade crowds out innovation …

and R&D support measures, and we survey the industrial actors they can encourage to pursue innovation. While deployment … innovation incentives, and R&D support has been comparatively weak. The paper concludes with a discussion of the opportunities …