There are plenty of studies analysing foreign direct investment flows in connection with other factors, however not so many of them take into consideration also effects on innovation performance of a particular country. The present study investigates a link between macro-level innovation performance and inward foreign direct investments in conditions of Slovakia. The results of regression analysis covering the period between 2003-2017 showed that innovation performance measured by gross expenditures on research and development is negatively influenced by foreign direct investment inflows, especially by greenfield investment projects allocated in Slovakia. This negative effect is even more significant on lagged level, namely one year after the investment allocation.
Keywords: innovation performance, inward foreign direct investment, greenfield investment, mergers and acquisitions