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When an innovative Canadian company is acquired by a foreign company, Canadians may instinctively lament the “loss” of another innovative Canadian company. This initial reaction needs to be tempered. We have to be open to the possibility that a merger and acquisition may actually lead to more innovative activity in Canada. But more importantly, we need to consider individual acquisitions in a broader context of cross-border investment and innovation, a context that includes multiple channels and incoming and outgoing flows.
Welcome to Canada: Foreign Direct Investment and Innovation has found a positive relationship between FDI and Canadian innovation. This conclusion holds across different kinds of flows and investment types.
Canadians often lament the “loss” of another Canadian company when it is acquired by a foreign company. This report, however, finds a positive relationship between foreign direct investment and Canadian innovation.
Cette publication comprend un résumé en français, suivi d’une version anglaise du rapport intégral.
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