Regional innovation and the retention of foreign direct investment: a place-based approach

Figures & data

Figure 1. Theoretical framework.

Table 1. Survival function table of divestment.

Time	Foreign ventures	Fail	Net lost	Survival function	Standard error	95% Confidence interval (CI)
1	927	192	59	0.793	0.013	0.765	0.818
2	676	119	47	0.653	0.016	0.621	0.684
3	510	47	40	0.593	0.017	0.560	0.625
4	423	34	74	0.545	0.017	0.511	0.579
5	315	35	39	0.485	0.018	0.449	0.520
6	241	15	51	0.455	0.019	0.418	0.491
7	175	7	45	0.437	0.019	0.399	0.474
8	123	3	42	0.426	0.020	0.387	0.464
9	78	1	35	0.420	0.020	0.381	0.459
10	42	0	42	0.420	0.020	0.381	0.459

Figure 2. Kaplan–Meier survival estimates.

Table 2. Descriptive statistics and correlation coefficients of key variables.^a

		1	2	3	4	5	6	7	8	9	10	11	12	13
1	Divestment (the event)	1
2	Regional technician supply	–0.26	1
3	Regional IP flexibility	−0.19	0.19	1
4	Firm R&D expenditure	−0.06	0.00	0.01	1
5	Regional FDI volume	−0.05	0.33	−0.06	0.02	1
6	Regional FDI countries	0.07	−0.27	−0.07	−0.06	−0.18	1
7	Regional marketization	−0.06	0.19	0.32	0.04	0.09	−0.11	1
8	Regional economic growth	0.64	−0.29	−0.12	−0.03	−0.10	0.19	−0.02	1
9	Return on assets	0.01	−0.01	0.01	0.01	−0.01	0.06	0.06	−0.02	1
10	Firm profit margin	0.02	−0.06	0.00	−0.01	0.02	0.02	0.04	−0.02	0.02	1
11	Firm age	−0.14	0.00	0.00	0.02	0.02	−0.02	0.02	−0.14	−0.01	0.04	1
12	Firm FDI	0.02	−0.29	−0.10	0.02	−0.04	0.09	−0.25	0.12	0.01	−0.04	0.00	1
13	Firm size	−0.07	−0.02	0.00	0.47	−0.01	−0.02	−0.04	−0.07	0.01	−0.04	0.04	0.24	1
	Mean	0.49	47.17	56.30	0.50	242.75	35.70	7.80	9.44	−0.01	8.98	73.60	21.39	62.62
	SD	0.50	35.02	11.97	1.07	291.63	37.85	1.21	6.24	1.32	12.84	46.21	27.69	122.52
	Minimum	0.00	3.38	22.80	0.00	0.00	3.00	1.23	−3.69	−24.07	−93.50	2.00	1.00	0.05
	Maximum	1.00	113.81	78.05	5.75	1800	159.00	11.01	27.61	17.92	70.71	323.00	165.00	2100
	VIF	–	1.42	1.17	1.32	1.16	1.12	1.22	1.16	1.01	1.03	1.41	1.02	1.24

Note: ^aCorrelation coefficients with absolute values > 0.05 are statistically significant at p < 0.05. N = 927. VIF, variance inflation factor.

Table 3. Hazard ratios of foreign direct investment (FDI) retention.^a

_t (time to event)	Model 1		Model 2		Model 3		Model 4		Model 5		Model 6		Model 7
H1: Regional technician supply (RTS)			0.939	***			0.942	***	0.940	***	0.942	***	0.940	***
			(0.007)				(0.007)		(0.007)		(0.007)		(0.007)
H2: Regional intellectual property flexibility (RIPF)					0.961	***	0.968	**	0.967	**	0.972	**	0.972	**
					(0.009)		(0.009)		(0.010)		(0.010)		(0.010)
H3a: RTS × FRNDE									1.004	^†			1.005	**
									(0.002)				(0.002)
H3b: RIPF × FRNDE											0.992	*	0.988	**
											(0.004)		(0.004)
Firm R&D expenditure (FRNDE)	0.914		0.893		0.916		0.898		0.776	*	1.365		1.369
	(0.064)		(0.065)		(0.066)		(0.067)		(0.079)		(0.277)		(0.266)
Regional FDI volume	1.000		1.000		1.000		1.000		1.000		1.000		1.000
	(0.001)		(0.000)		(0.001)		(0.000)		(0.000)		(0.000)		(0.000)
Regional FDI countries	1.006		1.022		0.998		1.018		1.017		1.017		1.016
	(0.006)		(0.018)		(0.007)		(0.020)		(0.020)		(0.019)		(0.019)
Regional marketization	2.104	***	1.265		1.887	***	1.200		1.206		1.207		1.210
	(0.240)		(0.192)		(0.220)		(0.172)		(0.171)		(0.174)		(0.167)
Regional economic growth	1.189	***	1.116	***	1.186	***	1.117	***	1.116	***	1.120	***	1.121	***
	(0.017)		(0.021)		(0.018)		(0.022)		(0.022)		(0.021)		(0.021)
ROA	1.041		1.040		1.029		1.031		1.029		1.033		1.030
	(0.049)		(0.041)		(0.049)		(0.041)		(0.042)		(0.041)		(0.041)
Firm profit margin	0.993		0.992	^†	0.995		0.994		0.993		0.994		0.993
	(0.005)		(0.005)		(0.005)		(0.005)		(0.005)		(0.005)		(0.005)
Firm age	1.002		1.002		1.002		1.002		1.002		1.003	^†	1.003	^†
	(0.002)		(0.001)		(0.002)		(0.001)		(0.001)		(0.001)		(0.001)
Firm FDI	0.999		0.997		0.999		0.997		0.998		0.998		0.998
	(0.002)		(0.002)		(0.002)		(0.002)		(0.002)		(0.002)		(0.002)
Firm size	1.001		1.001		1.001		1.001		1.000		1.001		1.000
	(0.001)		(0.001)		(0.001)		(0.001)		(0.001)		(0.001)		(0.001)
Constant	0.000	***	0.029	*	0.001	***	0.153		0.147		0.115		0.102
	(0.000)		(0.048)		(0.001)		(0.234)		(0.220)		(0.175)		(0.149)
Parameter p	1.87		1.99		1.90		2.02		2.03		2.02		2.04
Log-likelihood	−611.16		−563.51		−603.40		−558.15		−556.12		−556.06		−552.22
ΔLog-likelihood			47.64	***	7.75	***	53.01	***	2.03	*	2.09	*	5.93	**
(compared with model number)			1		1		1		4		4		4

Note: ^aRobust standard errors are shown in parentheses. Region, industry and year dummies are included. The number of observations = 927; and the number of firm-region clusters = 251. Variables in interaction terms are mean centred.

†p < 0.10; *p < 0.05; **p < 0.01; ***p < 0.001.

Figure 3. Kaplan–Meier survival estimates for each quintile of the regional technician supply (RTS) and regional intellectual property flexibility (RIPF).

Figure 4. Marginal effects (with 95% confidence intervals – CI) of the regional technician supply (RTS) and regional intellectual property flexibility (RIPF) at different levels of firm research and development (R&D) expenditure.