computers, processed foods, cigarettes, etc. Inward FDI and innovation in the Indian service sector. The equity capital accounted for.8 per cent, whereas re-invested earnings were.8 per cent, and other capital for.4 per cent of the total FDI inflows in India, as shown in Fig. Further, it does not discuss opportunities when FDI is more profitable. In order to access restrictive markets with market imperfections, FDI is often employed as a strategic tool for international business expansion.
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Direct to Home (DTH) FDI and FII with prior government approval. (ii) Market Imperfection Theory : Factors that inhibit markets from working perfectly are known as market imperfections. It is estimated that about 70-80 per cent of FDI are in the form of. FDI and Independent Innovation in Zhejiang: An Empirical Analysis Based on Panel Data of Manufacturing. Compared to the other two, invention acquires higher capacity of innovation and larger cost which measures firms' ability more accurately (Cheung and Lin, 2004). In 2009, FDI flowed in China increased.899 billion yuan, with year-on-year growth of more than.9 and China still attracted the largest amount of FDI in the world (Gong, 2005). Therefore, FDI flows are less volatile and easier to sustain at the time of economic crisis.
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