02236nam a22003857u 4500 pwiiw7346 OSt 20260516120037.0 250625t2025 au ||||| |||| 00| ||eng d OSt eng F23 L23 O24 O33 O34 R58 Q55 jelc Castelli, Chiara Harnessing FDI for innovation and green growth in the EU: Some evidence-based policy recommendations Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2025. 17 S., 2 Figures, 30cm. wiiw Policy Notes and Reports 97 Foreign direct investment (FDI) has become a driver of growth in both developed and developing countries, as it enables the transfer of know-how and advanced technologies to host economies. This policy note discusses how FDI can effectively support innovation and green growth within the European Union (EU). It focuses on the role of regulatory harmonisation and technological alignment as factors that can significantly influence the location decisions and effectiveness of FDI. Similarly, as spill-overs from foreign affiliates substantially enhance local innovation capabilities, particularly in green technologies, we argue in favour of policies enhancing domestic absorptive capacity and of policy mechanisms that can systematically integrate sustainability criteria into FDI screening processes. Aligning investment policies with regional technological strengths and green transition goals will enable the EU to leverage FDI strategically for sustainable economic growth and climate resilience. FDI regulatory distance in NTMs technological proximity environmental technology regional spill-overs European Union International Trade, Competitiveness and FDI Davies, Ronald B. Flórez Mendoza, Javier Ghodsi, Mahdi Guadagno, Francesca Micocci, Francesca Rungi, Armando 97 WIIW0000092 wiiw Policy Notes and Reports https://wiiw.ac.at/p-7346.html P 9141 9141 0 0 0 0 BIB BIB 1 2025-06-25 pwiiw7346 0 97 1000010007346 2025-06-25 00:00:00 2025-06-25 P