TECHNOLOGY TRANSFER, FDI AND ECONOMIC GROWTH IN THE EU TRANSITION COUNTRIES AND THE REPUBLIC OF CROATIA

The importance of technology in driving the economic growth has been the subject of many studies since technology is one of the key factors of economic growth. Foreign direct investments (FDI) are one of the most effective ways to transfer modern technology and have a positive effect on economic growth. This paper analyses the impact of FDI and indicators of technology transfer and competitiveness on economic growth in the EU Transition countries and Croatia in the period from 2001 to 2010. The analyzed variables were FDI, technology transfer indicators (granted patents, investment in R&D, investment in education) and their impact on GDP. The results showed that there is a positive relationship between FDI and technology transfer indicators on GDP as the key indicator of economic growth what is also related to the EU Transition countries and Croatia.