It is commonly thought that the inward foreign direct investment (FDI) flow has positive impacts on the economic growth of host countries by creating new employment opportunities, accumulation of capital stock, and "spillovers" of superior technology and knowledge to host economy and to local firms. Especially for less developed countries transfer of advanced technology and technological knowledge is regarded a critical factor to upgrade their national technological capabilities and hence, economic development. Thus it is generally suggested for less developed countries to improve their...