Investment in technology, foreign direct investment and country image: what is the relation?

ENPurpose of the article. A number of previous studies have analysed different aspects of country image and foreign direct investment (FDI) or FDI and investments. However, there is a lack of sufficient studies that investigate how the factors of country image, FDI and investment in technology are related to each other, or the country image is related to investment in technology. Thus the purpose of the paper is to analyse theoretically and to test empirically the interaction of country image, FDI and investment in technology. Methodology/methods. The relation between investment in technology, FDI and country image is analysed using constructive research approach by applying systematic review, analysis, deduction and other methods. The strength of the relation between investment in technology, FDI and country image indicators is evaluated using correlation method. The theoretical literature and empirical studies are analysed. Moreover, the theoretical method is created for the evaluation of this relation and tested by empirical study. Scientific aim The aim of the paper is to determine and to evaluate the relation between investment in technology, FDI and country image. Findings According the results of empirical study, the correlation between FDI and investment in technology is stronger than between FDI and country image, investment in technology and country image. Thurthermore, country image have stronger relation with investment in technology than with FDI.Conclusions. On the basis of the scientific literature review it could be concluded, that any country has to define the desired country image and change the current image to the desired. The amount of FDI should be strongly influenced by the country image. Creation of desirable country image could be beneficial instrument for attracting investors with innovative technologies and technological knowledge. Moreover, the opinion of foreign investors should affect FDI inflow, which also has the impact for economic growth and changes of country image.