Foreign direct investment and technology catch-up in post-Mugabe Zimbabwe

Abstract

Mugabe’s forced resignation and subsequent policy changes provide prospects for increased inflows of foreign direct investment (FDI) to Zimbabwe. This study employs a System of Innovation (SoI) framework to highlight post-independence Zimbabwe’s technology situation, which has generally deteriorated. It further explores whether and how inward FDI post-Mugabe’s era can be directed towards technology catch-up. The quality of inward FDI, policy and institutional frameworks and the new government’s posture on innovation will largely determine whether and how technology will catch up. Directing inward FDI towards technology catch-up and innovation in general can affect Zimbabwe’s industrial productivity, economic growth and ultimately development. Explicit FDI and innovation policies are encouraged.