When looking at the FDI flows between Canada and the Asia Pacific from 2017 to 2021, the software and computer services sector was the largest recipient of both inward and outward FDI flows in R&D, accounting for 28% of Canada’s investment in the Asia Pacific and 65% of Asia Pacific investment in Canada. [...] What explains the preference for the greenfield establishment mode when it comes to FDI in R&D? The literature suggests that the preference for greenfield FDI is contingent on R&D intensity, the extent of diversification, international experience, cultural distance, the host market governance environment, the size of the investment relative to the firm, and the time of entry. [...] The increase its proximity to the Silicon Valley in in investment observed in 2013 coincides the South attract R&D companies to the city with the scaling up of the government’s such as Fujitsu. [...] The current trends in the Asia Pacific’s spending on R&D may lead to the expansion of Canadian R&D in the region in the future. [...] In 2021, R&D spending was concentrated in the technological and environmental sectors and was referenced heavily in the budgets for several Asia Pacific economies, including India, South Korea, and Australia.63 The efforts of Asia Pacific countries to boost local R&D are reflected in the Global Innovation Index, which was launched by WIPO to track the innovativeness of countries around the world.6.
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