Take a look at :
How Tax Policy and Incentives Affect Foreign Direct Investment
A Review By Jacques Morisset and Neda Pirnia.
While you may find a positive correlation on some of the studies carried out, you should be careful on drawing conclusions on them. Some of the other factors include overall costs of production on that specific region which may dampen the effects of tax incentives. For example, high electricity costs, telecommunications infrastructure(or lack thereof) investment, among other factor for a tech company might offset the proposed tax incentive. This is particular of each sector and might not be reflected on general surveys.
Another area that is of interest to me is the effect of FDI on the long term sustainability of the country receiving the investment. In Puerto Rico the effects of 936 incentives were substantial, but once the incentive was phased out it left a vacuum in the Island's economy (a long term effect of FDI incentive withdrawal which in my opinion should be looked at before considering FDI initiatives).
In terms of affecting innovation policy you must be careful in examining the literature and look at the underlying costs of production to carry out an objective assessment of the situation. All things being equal FDI should have a positive effect.
Let me know how your research progresses
Attached are 2 files: (1) IMF's macroeconomic data of all member countries, and (ii) World Economic Forum annual report on Global Competitive Report which contains information on national innovation listed by countries. With these data on hand, you should be able to construct a model and test it. Cheers.
Dear Khalid,
These papers may offer some insights on the nexus between FDI, import, export, growth, innovation:
https://www.researchgate.net/publication/299747565_Towards_a_talent-driven_outward-oriented_globally-competitive_SME_framework_Discussion_Paper
https://www.researchgate.net/publication/260638458_Strategies_for_enhancing_Jamaican_competitiveness_in_the_global_knowledge_economy
https://www.researchgate.net/publication/301341427_Reforming_Jamaica%27s_National_Systems_of_Innovation
https://www.researchgate.net/publication/267155811_Locational_Determinants_of_Foreign_Direct_Investments_in_an_Emerging_Market_Economy_Evidence_from_Jamaica
https://www.researchgate.net/publication/305687139_Priority_policy_recommendations_for_transforming_individual_productivity_and_SME_competitiveness_in_Jamaica
Conference Paper Strategies for enhancing Jamaican competitiveness in the glo...
Article Locational Determinants of Foreign Direct Investments in an ...
Technical Report Reforming Jamaica's National Systems of Innovation
Technical Report Priority policy recommendations for transforming individual ...
Technical Report Towards a talent-driven outward-oriented globally-competitiv...
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