Published March 2025, Pg. 54-58

Section: Economy, management and law

UOT: 330.1

DOI: 10.37474/0365-8554/2025-03-54-58

The impact of foreign investments and technology transfer on economic development in the european region

H.E. Hasanova - Azerbaijan State University of Ecomonics

This paper examines the impact of foreign direct investment (FDI) and technology transfer on economic development in the European region. Foreign investment not only ensures capital inflows but also contributes to the dissemination of new technologies, management practices, and innovations. The study analyzes the effects of FDI and technology transfer on GDP growth, labor productivity, and industrial development in various European countries.
The research findings indicate that FDI contributes between 1.5–2 % to GDP growth, while technology transfer and innovation account for 0.8–1.2 %. In recent years, foreign investments directed towards green technologies and the ICT sector have significantly influenced industrial and innovation development in Europe.
The methodology is based on an analysis of economic indicators of European countries and international reports. The results show that the impact of FDI and technology transfer varies across countries. Eastern European countries use foreign investments primarily for industrial modernization, whereas Western Europe focuses more on innovation and high-tech production.
The study concludes that technology transfer is a key driver of economic growth and also accelerates regional integration. The effective utilization of foreign investments and technology transfer can enhance the long-term economic resilience of European countries.
 

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